SIA Engineering Group has just released its financial results for the first quarter of 2018-19. The Group has posted a profit of $40.5 million for the quarter—an increase of $3.8 million, or 10.4%, from the same period last year.
The Group attributes the growth mainly to an increase in share of profits from associated and joint venture (JV) companies, which saw an increase of $11.3 million—or 53.6%—to $32.4 million. Contributing to this was an $11.8 million increase in share of profits from engine and component centers.
Operating profit of $10.2 million was $8.5 million—or 45.5% lower—than the same quarter last year. Meanwhile, revenue of $257.7 million was $15.1 million—or 5.5%—lower year-on-year. The Group attributes this mainly to lower airframe and fleet management revenue.
The Group’s expenditure decreased year-on-year by $6.6 million—or 2.6%—to $247.5 million. The Group says this is mostly 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, as well as lower subcontract services costs.
In terms of future outlook, the Group says its performance will continue to benefit from its portfolio of strategic partnerships. According to the outlook summary released with the financial results, the Group’s “transformation journey” to better serve customers and improve performance (which was also cited in the Group’s previous financial report for Q3, ending March 31) is “progressing with phased implementation of various productivity and revenue generation initiatives.” Echoing the previous report’s action plan, the Group says it will continue to invest in innovation and technology to enhance capabilities, such as partnering with Safran Analytics on predictive maintenance with the goal of minimizing maintenance surprises.