SINGAPORE (Feb 3): SIA Engineering Company (SIAEC) has announced earnings of $52.6 million for the third quarter of FY17, 6.5% higher than its earnings of $49.4 million a year ago.

This was largely attributable to SIAEC recording a $2.3 million gain on the partial disposal of an associated company, as well as due to the absence of provisions for closure costs and impairment of two associated companies which negatively impacted the group in the same quarter last year, says the group in a Friday aftermarket filing to the SGX.

Revenue for the quarter fell by 1.1% to $272.3 million from $275.2 million in the preceding year, mainly from lower fleet management and airframe & component overhaul revenue. This was however partially mitigated by higher line maintenance revenue.

Expenditure grew by 0.4% to $247.1 million from $246.2 million in 3Q16.

Share of profits of joint venture companies was $14.3 million, $3.2 million lower than the same quarter last year, while contributions from associated companies grew by 10.2% to $17.3 million.

Basic earnings per share (EPS) for the group was 4.69 cents for 3Q17, and 25.53 cents for the nine months ended Dec 31, 2016.

While SIAEC notes that its recently-formed joint ventures – such as with its agreement to established a Singapore-based joint venture with Moog Inc. and the incorporation of Heavy Maintenance Singapore Services in October – position the company well for the future, the group highlights that these are not expected to be accretive in the near term.

(See also: SIA Engineering signs JV with Moog Inc)

(See also: SIA Engineering forms JV with Airbus)

In its outlook, SIAEC says it expects the aerospace industry’s operating environment to remain challenging in the face of persisting global economic uncertainties.

It therefore intends to continue to enhance operating efficiencies and manage costs, including investing in new technologies and investing innovation, as part of its ongoing efforts to remain competitive.

Shares of SIAEC closed 0.3% lower at $3.52 on Friday.