SIA Engineering's Q3 profit up 6.7% on restructuring gains

ONE-TIME restructuring gains boosted the earnings of SIA Engineering Group (SIAEC) in its third quarter.

The group's Q3 net profit rose 6.7 per cent year-on-year to S$49.4 million for the three months ended Dec 31, it said in a Singapore Exchange filing on Monday.

Revenue increased too, but at a slower clip, at 3.7 per cent to S$275.2 million, as a result of increased revenue from higher fleet management and line maintenance.

Expenditure increased at a lower rate of 2.2 per cent to S$246.2 million, due to lower expenses in other areas offsetting the increases seen in material and staff costs.

One-time restructuring gains, including profits from the sale of facilities, greatly increased the share of profits from associated and joint venture companies. This grew by 31.2 per cent to S$33.2 million.

Among these profits, those from engine repair and overhaul centres increased 25.6 per cent to S$19.6 million.

During the quarter, the group registered a S$4.3 million loss on the closure of an associated company, and made a S$2.5 million provision for impairment for another associated company.

Basic earnings per share rose to 4.40 Singapore cents for the quarter from 4.13 Singapore cents a year ago.