SIA Engineering Co registers 40.7% drop in net profit for Q2 FY14/15

SIA Engineering Company (SIAEC) reported a near-41 per cent year-on-year slump in net profit to S$42.1 million for the second quarter ended Sept 30, due partly to a declining share of profits from associated and joint-venture companies.

Revenue was lower in Q2 by about three per cent to S$285.2 million as lower airframe and component overhaul revenue was offset in part by higher fleet management revenue. Operating profit was also lower, falling 44.2 per cent to S$15.9 million.

Earnings per share for the quarter worked out to 3.75 Singapore cents, down from 6.39 Singapore cents a year ago.

Meanwhile, for the six months ended Sept 30, net profit was down 31.7 per cent to S$95.6 million, while revenue was nearly flat at S$579.3 million.

The group has declared an interim dividend of six Singapore cents per share.

It said: "The group's performance continues to be affected by the decline in engine shop visits and heavy checks. Pressure on margins has not abated with rising business costs and intense competition. We are stepping up efforts to improve productivity to stay competitive in this overall challenging environment."