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SIA Engineering posts flat profit in Q4 FY16

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SIA Engineering Co (SIAEC) reported a flat net profit of S$41.4 million for the fourth quarter ended March 31, 2016.

SIA Engineering Co (SIAEC) reported a flat net profit of S$41.4 million for the fourth quarter ended March 31, 2016.

This was despite revenue rising from S$276 million in the corresponding quarter a year earlier to S$294.2 million.

Operating profit rose from S$23.1 million to S$27.5 million, while expenditure increased from S$252.9 million to S$266.7 million.

Share of profits of joint venture companies, however, was lower at S$4.9 million, versus S$13.2 million a year ago.

For FY16 as a whole, net profit slid 3.7 per cent year on year to S$176.6 million, while revenue inched down 0.7 per cent to S$1.11 billion.

"The operating environment for the maintenance, repair and overhaul industry remains challenging. We will continue to invest in new competencies and capabilities to meet the changing technological demands as airlines replace their older fleets with the new-generation Airbus A350 and Boeing 787," said SIAEC. "With the lower work content and longer check intervals of these technologically advanced fleets, measures to strengthen competitiveness, gain market share and manage costs will remain our key priorities."

The board is recommending a final ordinary dividend of eight Singapore cents per share, down from 8.5 cents in the last financial year.