SINGAPORE (Feb 8): SIA Engineering reported 3Q18 earnings ended Dec of $33.1 million, or 2.95 cents per share. This was 40.1% lower compared to a year ago, mainly due to one-time events from the associated and joint venture companies.

3Q18 revenue of $255.9 million was lower by 5.6% from a year ago, mainly from lower airframe and fleet management revenue, partially mitigated by higher line maintenance revenue. Expenditure at $240 million decreased at a lower rate of 4.8%, mainly due to lower material costs in line with the lower workload.

As a result, operating profit came in at $15.9 million, 15.4% lower year-on-year.

Share of profits of associated and joint venture companies came in at $19.2 million, 52.9% lower year-on-year, due mainly to the impact of one-off events. These included a revision in fee structure of an engine shop in 2018 that evened out its revenue over the year instead of a lump sum adjustment in the third quarter of the last financial year; a foreign exchange adjustment made for the functional currency change of an associated company; and a one-time tax charge booked by certain associated companies in the current quarter.

For the nine months ended Dec, the group recorded earnings of $111.6 million, a decrease of 14.5%.

In its outlook, SIA Engineering says the operating environment remains challenging and will continue to focus on its transformation journey and investments in technologies and will manage its portfolio of joint ventures to drive sustainable growth.

In the past 12 months, shares in SIA Engineering have fallen by 24% to close at $2.52 on Friday.