SIA Engineering Q1 net profit up 2.7% to S$41.6m on lower expenses

SIA Engineering Group on Friday posted a 2.7 per cent improvement in first-quarter net profit to S$41.6 million from S$40.5 million a year ago owing to higher operating profit as a result of lower expenses.

Revenue for the three months to June was flat at S$258.1 million, up 0.2 per cent from S$257.7 million a year ago. Revenue from the airframe and line maintenance segment was S$2.3 million higher but this was partially offset by a S$1.9 million decrease in revenue from the engine and component segment, said the company in its results announcement.

Operating profit rose 74 per cent to nearly S$18 million on the back of a nearly 3 per cent lower expenditure due to a reduction in material costs.

Earnings per share for the quarter stood at 3.72 Singapore cents from 3.62 Singapore cents a year ago.

No dividend was recommended.

The company said it has begun to note improvement in manpower utilisation, productivity and turnaround time from its transformation initiatives and adoption of technologies, adding that more initiatives will be implemented company-wide to better performance. Nonetheless, the operating environment remains challenging, it warned.

SIA Engineering fell two Singapore cents or 0.8 per cent to close at S$2.65 on Friday.