SIA Engineering Company yesterday reported net profit of $55 million for the fourth quarter, up nearly 20 per cent.
The increase was due to a $14.3 million gain as it divested its shares in associated company Asian Compressor Technology Services Company (ACTS).
ACTS was a joint venture in which SIA Engineering held a 24.5 per cent stake. It was sold to MB Aerospace Newton Abbot for US$60 million (S$80.6 million), SIA Engineering said last October.
Revenue slid 6.4 per cent to $276.4 million in the three months to March 31 due to lower airframe and component overhaul and fleet management turnover. Earnings per share came to 4.91 cents, up from 4.09 cents previously.
Expenditure fell 5.8 per cent to $255.8 million due to lower staff and subcontract costs. Operating profit was $20.6 million, or 13.8 per cent lower.
The share of profits of associated and joint-venture companies totalled $25 million in the quarter, declining 7.4 per cent, due to reduced share of earnings from the engine and component centres.
AT A GLANCE
REVENUE: $276.4 million (-6.4%)
NET PROFIT: $55 million (+19.8%)
FINAL DIVIDEND PER SHARE: 9 cents (-35.7%)
Net profit for the full year came to $184.1 million, 44.6 per cent lower year-on-year, as the previous 12 months included a gain from the divestment of its stake in Hong Kong Aero Engine Services to Rolls-Royce Overseas Holdings.
Revenue was down 0.8 per cent at $1.09 billion, mainly from lower fleet management revenue.
A final dividend of nine cents a share for the year has been declared. Last year, it paid a dividend of nine cents, plus a special dividend of five cents a share.
The firm said it "has embarked on a journey to enhance productivity, streamline processes and increase competitiveness".
"Our joint ventures further augment (our) business, enabling us to gain access to new products, markets and technology," it added.
During the year, it has expanded its portfolio through joint ventures with GE Aviation and Stratasys.
SIA Engineering shares closed up two cents at $3.33 before its results were announced.