SIAEC Q3 net profit falls nearly 23.5% to S$46.3m

SIA Engineering Co (SIAEC) reported a net profit of S$46.3 million for the third quarter ended Dec 31, 2014, down from S$60.5 million in the corresponding quarter a year earlier.

Revenue fell from S$283.8 million to S$265.3 million, while earnings per share came to 4.13 Singapore cents, versus 5.43 cents previously.

SIAEC said that revenue from airframe and component overhaul declined as work content was lower with fewer heavy checks. However, this was offset by higher fleet management and line maintenance revenue.

Operating profit came to S$24.3 million, 3.6 per cent lower, for the quarter under review.

Meanwhile, share of profits from associated and joint venture companies slumped 33.2 per cent to S$25.3 million, largely due to lower contributions from the engine repair and overhaul centres.

"Overall, the operating environment remains challenging. While heavy maintenance business is stabilising, engine shop visits will continue to decline," SIAEC added. "With intense competition and increasing business costs, the pressure on margins will remain. We will continue with our efforts to manage costs that have yielded improvements in productivity and operating efficiencies."