SINGAPORE (July 25): SIA Engineering Company posts earnings of $36.2 million for the first quarter ended June, 81.8% lower than earnings of $198.4 million a year ago.
This was mainly due to the absence of gain from the divestment of SIAEC’s 10% stake in Hong Kong Aero Engine Services last year.
Excluding the divestment, SIAEC’s 1Q earnings would have been 4.7% lower than the earnings of $38.0 million in same quarter last year.
Revenue in 1Q held steady at $272.8 million, a marginal increase of 0.4% from revenue of $271.6 million a year ago.
Expenditure decreased by 6.8% to $254.7 million, mainly due to the absence of a provision made in the same quarter last year for the estimated increase in the profit-linked component of staff remuneration arising from the gain on divestment.
Post-divestment, operating profit for 1Q amounted to $18.1 million, $19.7 million higher compared to the operating loss of $1.6 million a year ago.
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Cash and cash equivalents stood at $628.7 million as at June 30, 2017.
Looking ahead, SIAEC says it has continued to pursue expansion opportunities for sustainable long-term growth despite a challenging operating environment for the maintenance, repair and overhaul (MRO) industry.
In a filing to SGX on Tuesday, it adds that it will continue with initiatives to increase productivity, enhance operational efficiencies and manage [its] costs to remain competitive.
Shares of SIAEC closed 18 cents lower at $3.87 on Tuesday.
