SIA Engineering margins at the mercy of USD currency

SIAEC revenues are mostly in USD and any further weakness in the foreign currency will erode its already teetering profit margins.

What's the full breakdown of SIAEC revenues for the first quarter, and which segments contributed the most?

Here's more from OCBC:

4QFY12 and FY12 operating margins fell 1ppt and 1.2ppt respectively from a year earlier to 10.3% and 11.1%. Management partially attributed the higher expenses to increased  subcontract costs, arising from higher revenue from its higher fleet  management segment. Going forward, with most of its revenue denominated in USD, SIAEC’s profit margins will likely face further downward pressure if the USD weakens.

Fleet management segment was revenue growth driver. SIAEC’s Airframe Maintenance and Line Maintenance segments recorded little revenue growth in FY12. However, revenue from its Fleet Management segment jumped 33% to S$218m. Furthermore, SIAEC now services a fleet of 160 aircraft for 13 customers in this segment, as compared to 140 aircraft and 11 customers at end-FY11. Other notables are 1) SIAEC’s share of profits of JV and associated companies in FY12 grew 9% to S$157m, contributing to 52% of its pre-tax profit, and 2) management proposed a final dividend of S$0.15/share, which comes after an interim dividend of S$0.06/share.