SIAEC Q3 profit up 4.2%

SIA Engineering Company's (SIAEC) third-quarter net profit edged up 4.2 per cent year on year to S$54.8 million, on the back of contributions from joint venture companies.

This was despite a 0.5 per cent dip in revenue to S$271 million owing to a decrease in fleet management revenue. Earnings per share for the quarter under review clocked 4.9 Singapore cents, up from 4.69 cents a year ago.

Expenditure climbed 2.3 per cent to S$252.8 million, mainly due to an exchange loss of S$1.7 million incurred against an exchange gain of S$4.8 million in the corresponding quarter last year. As a result, operating profit fell nearly 28 per cent to S$18.2 million.

For the quarter under review, share of profits of joint venture companies shot up around 60 per cent to S$22.9 million, bolstering the bottom line.

SIAEC said: "The operating environment remains challenging with intense competition in the region and lighter maintenance arising from technological advancements of the new-generation aircraft. To overcome the challenges, the company has been investing in innovation and technology to improve our capabilities and sharpen our competitive edge."

The counter closed one Singapore cent lower on Friday at S$3.33.