SATS net profit up 12% in fiscal Q1

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Singapore-based ground handling and catering company SATS has posted 12% growth in its first quarter net profit for the fiscal year 2013/14.

It reported a net profit of Singapore dollars (S$) 46.2 million ($36.6 million) for the quarter to 30 June, up from S$41.3 million in the corresponding quarter a year ago.

The company's revenue declined by 0.8% to S$435 million in the quarter, while its operating costs fell by 1.2% to S$394 million.

SATS' operating income amounted to S$40.7 million, an increase of 3.6% year on year.

The recent operating indicators from Singapore Changi airport suggested a moderation in passenger traffic growth and a continued downward trend for air freight. These trends are expected to continue in the near term, in view of the ongoing uncertainty in the global economy and slowing growth in China, says SATS.

While labour availability and costs continue to be key challenges, SATS says that it remains focused on managing costs and increasing productivity. It is actively evaluating strategic opportunities to grow its businesses and regional presence.

In June, the company announced that it was selling its 40% stake in a Jeddah-based catering operation as it sought to pursue other investments in the Middle East.