SINGAPORE (July 26): SIA Engineering reported 1Q20 earnings of $41.6 million or 3.72 cents per share, 2.7% higher than the previous year.
This was mainly due to a 73.5% increase in the group’s operating profit to $17.7 million from $10.2 million the preceding year.
Revenue for the quarter came in at $258.1 million, 0.2% higher than $257.7 million last year.
This was due to an increase of $2.3 million in revenue from the airframe and line maintenance segment, and was partially offset by a $1.9 million decrease in revenue from the engine and component segment.
Total expenditure fell 2.9% at $240.4 million, due primarily to a reduction in material costs.
Share of profits of associated and joint venture companies came in at $26 million, 19.8% lower than a year ago, with the engine and component segment turning in a profit of $26.7 million and the airframe and line maintenance segment incurring a loss of $0.7 million.
Contributions from the engine and component segment decreased $6.1 million, mainly due to higher expenses incurred by an engine centre as it gears up for new engine capabilities, while contributions from the airframe and line maintenance segment decreased by $0.3 million
As at June 30, cash and cash equivalents stood at $593.5 million, up 13.8% from the previous year.
In its outlook statement, SIA Engineering says although the operating environment remains challenging, it has begun to see improvement in manpower utilisation, productivity and turnaround time from its transformation initiatives and adoption of technologies.
Shares in SIA Engineering closed 2 cents higher at $2.65 on Friday.
