SIA Engineering Q2 profits down 1.55% to $38m

It blamed lower airframe and fleet management revenue.

SIA Engineering’s profits for the second quarter of 2018 fell 1.55% to $38m from $38.6m in the same period last year. Revenue also fell 8.5% to $251.3m from $274.7m.

According to its financial statement, revenue fell due to lower airframe and fleet management revenue. Expenses fell 5.7% to $240m, primarily due to decreases in material and subcontract costs.

The share of profits of associated and joint venture companies soared 31% to $30m, with a $6.3m increase in the share of profits from the engine and component centres and an $800,000 increase in contributions from the airframe and line maintenance segment.

“With longer maintenance intervals and lighter work content arising from new-generation aircraft, coupled with keen competition, the operating environment will remain challenging,” the company said.

SIA Engineering declared an interim dividend of 3 cents per share payable on 28 November 2018.