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SIAEC's first quarter profit up 74%

SIA Engineering (SIAEC) posted a dramatic increase in its operating profit in the first quarter of fiscal 2019, with a 74% jump to S$17.7 million ($12.9 million).

Revenue for the quarter ended 30 June grew marginally to S$258 million. A reduction in material costs helped to lower its expenses by 2.9% to S$240.4 million.

The company says in a disclosure that while revenue from the airframe and line maintenance segment rose S$2.3 million, this was offset by a S$1.9 million decline in revenue from the engine and components segment.

Attributable net profit for the quarter rose 2.7% to S$41.6 million.

Cash and cash equivalents at the end of the period came in at S$593.5 million, 3.9% higher than the same period a year before.

SIAEC notes that its business transformation initiatives have begun bearing fruit in areas such as productivity and manpower utilisation. It will also implement more initiatives to further improve its performance.

In its outlook, SIAEC says the MRO operating environment will still be challenging. It will continue to pursue joint ventures and alliances, and will work with its partners to sustain growth.

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