SIA Engineering profits rose 1.3% in Q3 to $16.1m

A stronger performance by the parent company expanded quarterly profits.

SIA Engineering (SIAEC) posted an operating profit of $16.1m for Q3 FY 2019, a 1.3% increase from $38.2m over the same quarter in 2018, according to its bourse filing. Revenues saw a 1.5% slip for the quarter at $252.1m from $255.9m.

The uptick in operating profits was due to the stronger performance by the parent company, offset by the weaker performance from its subsidiaries.

Meanwhile, the drop in the overall revenues was mainly attributed to a $3.9m decrease in airframe and line maintenance revenues.

Share of profits from associates and joint venture companies in Q3 recorded a massive 106.3% increase YoY at $39.6m. The engine and component segment pitched in $21.9m higher contributions for the quarter, whilst contributions from the airframe and line maintenance segment were down by $1.5m.

The higher contributions from the engine and component segment were mainly due to the write back of tax provisions following the confirmation of tax concession granted for certain engine and component centres.

For the 9M ending December 2019, SIAEC’s operating profit grew 42.8% to $16m. Revenues for 9M were flat YoY at $764.8m.

Profit expansion was similarly due to the stronger performance of the parent company. Meanwhile, the revenue contraction for 9M was attributed to the $3.1m decrease in revenues from the engine and component segment, whilst largely mitigated by the $3m increase in revenue from the airframe and line maintenance segment.

Share of profits of associated and joint venture companies in 9M jumped 14% at $93m. Contributions from the engine and component segment were up $15m, whilst airframe and line maintenance segment’s contributions were lower by $3.6m.