SIA ENGINEERING POSTS GROUP PROFIT OF $53.5M FOR 1st QUARTER 2014-15

GROUP EARNINGS
SIAEC Group posted a profit attributable to owners of the parent of $53.5 million for the first quarter ended 30 June 2014.

Revenue increased $4.7 million or 1.6%, primarily due to higher fleet management revenue, offset by a reduction in airframe and component overhaul revenue. The lower airframe and component overhaul revenue was caused by fewer than planned heavy checks. Expenditure increased at a higher rate of 4.5% mainly due to a higher subcontract work content. The resulting operating profit for the quarter was $20.7 million, $7.0 million lower than the same quarter last year.

Share of profits of associated and joint venture companies was $30.6 million, a drop of $12.4 million or 28.8% from a year ago. This was mainly due to a $11.6 million or 37.8% decrease in contribution from the engine repair and overhaul centers.

Basic earnings per share was 4.79 cents for the first quarter of FY2014-15.

Note: The SIAEC Group’s unaudited financial results for the first quarter ended 30 June 2014 were announced on 25 July 2014. A summary of the financial statistics is shown in Annex A. (All monetary figures are in Singapore Dollars. The Group comprises the Company and its subsidiary, joint venture and associated companies.)

GROUP FINANCIAL POSITION
As at 30 June 2014, equity attributable to owners of the parent amounted to $1,419.5 million, $58.6 million or 4.3% higher than at 31 March 2014.

Total assets increased by $75.6 million or 4.4% to $1,782.7 million. Net asset value per share of 126.9 cents was 4.9 cents or 4.0% higher than at 31 March 2014.

The cash balance of the Group as at 30 June 2014 was $605.6 million, an increase of $69.9 million or 13.0% compared to 31 March 2014.

OUTLOOK
The outlook for the SIAEC Group has become more challenging with the decline in heavy checks and reduction in engine shop visits.

Rising business costs will exert increasing pressure on margins. Efforts to manage costs and to strengthen our competitiveness across core businesses remain a priority.

The Group will continue to pursue collaborations with strategic partners, such as the recently announced partnership with Boeing, which will position us well to take advantage of long-term growth opportunities in the region.