SIA Engineering 1H16 Net Profit Falls 10.6%

SIA Engineering has reported a 1H16 net profit of $85.8 million, a fall of 10.6 percent from the net profit of $97.5 million in the same period last year, amidst a loss in revenue received.

Revenue saw a drop of 6.2 percent to $543.3 million mainly from lower airframe and component overhaul revenue, offset in part by higher line maintenance revenue. The group has also implemented successful cost savings measures which brought expenditure down by 8.7 percent to $47.3 million, mainly from lower content of subcontract work, in addition to lower material and staff cost.

As expenditure decreased at a higher rate than the decrease in revenue, the group experienced an increase of 30.9 percent in operating profit to $47.9 million.

However the loss in net profitability was due to the decrease in share of profits from associated and joint venture companies, which slipped $17 million or 28.5 percent to $42.7 million. The contributions from the engine repair and overhaul centres decreased by $16.2 million (41.4 percent) to $22.9 million, with fewer engine shop visits, ultimately offsetting the group’s operating profit.

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