SINGAPORE (Nov 8): SIA Engineering Company (SIA EC) posted earnings of $38 million for 2Q19, 1.6% lower than $38.6 million in 2Q18 due to lower sales.

Revenue for 2Q fell 8.5% to $251.3 million on the back of lower airframe and fleet management revenue contributions.

Expenditure fell 5.7% on-year to $240 million compared to $254.6 million previously as a result of lower material and subcontract costs.

In all, operating profit for the quarter was down by nearly half at $11.3 million compared to $20.1 million for 2Q18.

The group’s share of profits of associated and joint venture (JV) companies grew by 31% to $30 million, largely because of higher share of profits from its engine & component centres as well as higher contributions from the airframe & line maintenance segment.

For the half year ended FY19, SIA EC recorded $78.5 million in earnings compared to earnings of $75.3 million in the same period a year ago.

Despite 7% lower revenue of $509 million and 44.6% lower operating profit of $21.5 million, an exchange gain of $1.7 million was registered over 1H19 compared to an exchange loss of $2.8 million previously.

Bottomline for 1H19 was further boosted by 41.8% higher share of profits of associated and JV companies, which grew to $62.4 million mainly on higher contributions from the engine & component centres.

Basic earnings per share for 2Q and 1H in the current financial year were 3.40 cents and 7.02 cents, respectively.

SIA EC has declared an interim dividend of 3 cents per share.

In its outlook, the group says it expects the operating environment to remain challenging, with the full benefits of its ongoing transformation journey to materialise over time.

Going forward, SIA EC believes the engine & component business of some of its major JVs and associated companies will continue to contribute positively to its bottomline.

Shares in SIA EC closed 2 cents lower at $2.91 on Thursday.