SINGAPORE (July 19): SIA Engineering recorded earnings of $40.5 million for the 1Q ended June, an increase of 10.4% from a year ago, mainly from an increase in share of profits of associated and joint venture companies, partially offset by a decrease in operating profit.

Operating profit of $10.2 million was 45.5% lower than the same quarter last year. Revenue at $257.7 million or 5.5% lower year-on-year, mainly due to lower airframe and fleet management revenue.

Expenditure decreased year-on-year by 2.6% to $247.5 million, mainly due to an exchange gain of $2.8 million in the current quarter against an exchange loss of $1.8 million in the same quarter last year, and lower subcontract services costs.

Share of profits of associated and joint venture companies increased 53.6% to $32.4 million, contributed by an $11.8 million increase in share of profits from the engine and component centres.

Basic earnings per share was 3.62 cents for the current quarter.

As at June 30, the group’s cash balance was $570.9 million. Net asset value per share was 138.1 cents.

In its outlook, SIA Engineering says while the MRO environment remains challenging, the group’s performance will continue to benefit from its portfolio of strategic partnerships.

“The transformation journey we have embarked on to better serve our customers and improve our performance is progressing with phased implementation of various productivity and revenue generation initiatives. We will continue to invest in innovation and technology to enhance our capabilities,” it adds.

Shares in SIA Engineering closed 1 cent higher at $3.19 on Thursday.