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SIAEC posts 22.8% drop in Q1 profit

SIA Engineering Company (SIAEC) reported a net profit of S$41.3 million for the first quarter ended June 30, 2015, down 22.8 per cent from the corresponding quarter a year ago, which included a S$5.8 million restructuring gain.

Stripping out the gain, net profit would have fallen 13.4 per cent, SIAEC said on Monday.

Revenue was 5.7 per cent lower at S$277.3 million, primarily due to lower airframe component and overhaul revenue. Earnings per share came to 3.68 Singapore cents, down from 4.79 Singapore cents in the year-ago period.

"Overall, market conditions for the maintenance, repair and overhaul (MRO) industry remain challenging. Rising business costs and competition from increasing MRO capacity in the region will continue to exert pressure on margins," said SIAEC.

It added: "Efforts to manage costs and strengthen our competitiveness across core business units will remain a key priority. We continue to build on our capability to handle new generation aircraft. This will broaden the depth and breadth of our capabilities and scope of services."