SIA Engineering's net profit up 5% to $53.6m in Q3

Thanks to an exchange gain of $4.8m.

SIA Engineering posted a higher net profit for the past quarter ending in December, up 5% to $53.6m.

Operating profit of $25.2m was $3.8m or 13.1% lower than the same quarter last year. Revenue of $272.3m saw a decrease of $2.9m or 1.1%, mainly from lower fleet management and airframe and component overhaul revenue, mitigated in part by higher line maintenance revenue. Expenditure at $247.1m increased at a lower rate of 0.4% or $0.9m as the current quarter benefitted from an exchange gain of $4.8m, while increases in staff costs were mitigated by lower subcontract costs.

For the quarter, the share of profits of joint venture companies was $14.3m, $3.2m lower than the same quarter last year. However, contributions from associated companies increased by $1.6m or 10.2% to $17.3m. Basic earnings per share were 4.69 cents for the current quarter.

The group said the operating environment of the aerospace industry remains challenging in the face of persisting global economic uncertainties.

"In line with our commitment to pursue strategic partnerships, during the quarter, we signed an agreement with Moog Inc. to establish a Singapore-based joint venture to overhaul Moog’s products, which include components on flight control systems for new-generation aircraft, such as the Boeing 787 and the Airbus A350. With the incorporation of Heavy Maintenance Singapore Services Pte Ltd in October, the joint venture with Airbus will have access to a larger market. While these and other recently formed joint ventures position the company well for the future, they are not expected to be accretive in the near term," SIA Engineering noted.

It added, "As part of ongoing efforts to remain competitive, we will continue to enhance operating efficiencies and manage costs, including investing in new technologies and advancing innovation."