SINGAPORE (Feb 2): SIA Engineering reported 3Q18 earnings rose 4.2% to $54.8 million, compared to $52.6 million in 3Q17.
Revenue for the quarter came in at $271 million, 0.5% lower than $272.3 million in the previous year, with the decrease in fleet management revenue partially mitigated by an increase in line maintenance revenue.
The group’s expenditure was 2.31% higher at $252.8 million compared to $247.1 million last year, mainly due to an exchange loss of $1.7 million incurred against an exchange gain of $4.8 million in the corresponding quarter last year, partially offset by a decrease in subcontract services.
Hence, the group’s operating profit for 3Q18 was $18.2 million, 27.8% lower than $25.2 million a year ago.
Share of profits of associated and joint venture companies, net of tax, came 29.1% higher at $40.8 million, compared to $31.6 million.
As at Dec 31, 2017, the group’s cash and cash equivalents stood at $449.6 million.
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In its outlook, SIA Engineering says the operating environment remains challenging with intense competition in the region and lighter maintenance arising from technological advancements of the new-generation aircraft.
To overcome the challenges, the group has been investing in innovation and technology to improve its capabilities and sharpen its competitive edge.
The group has also developed a roadmap to review all its business processes, organisation structure and services to identify transformative initiatives to better serve its customers and improve its performance.
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The group will continue to engage with its joint venture partners and seek new partnerships to seize opportunities that come with the disruptions in the MRO industry.
Shares in SIA Engineering closed at $3.33 on Friday.
