SIA Engineering reports fiscal 1Q net profit rose 3 percent as expenses fell

Singapore Changi Airport Terminal 4 departure boardSingapore Changi Airport Terminal 4 departure board

SIA Engineering reported Friday its fiscal first quarter net profit rose 2.7 percent on-year to S$41.6 million as nearly flat revenue was offset by a decline in expenses.

Revenue for the quarter ended 30 June edged up 0.2 percent on-year to S$258.1 million, the company said in a filing to SGX.

Airframe and line maintenance revenue rose by S$2.3 million in the quarter, while revenue from the engine and component segment fell by S$1.9 million, the filing said.

Expenditure declined 2.9 percent on-year to S$240.4 million, mainly on lower material costs, the filing said.

The share of profit of associated and joint venture companies, net of tax, dropped 19.8 percent on-year in the quarter to S$26 million, SIA Engineering said. That was due to the engine and component segment seeing a S$6.1 million decline in contributions on higher expenses from the engine center as it ramped up new engine services, and as airframe and line maintenance contributions fell by S$300,000, the filing said.

SIA Engineering said the operating environment remained challenging.

“We have begun to see improvement in manpower utilization, productivity and turnaround time from our transformation initiatives and adoption of technologies. More initiatives will be implemented company-wide to further improve performance,” the company said. “We continue to pursue our strategy of joint ventures and alliances. ”

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