SIA ENGINEERING GROUP 3Q PROFIT UP 5.5% to $67.0 MILLION HIGHLIGHTS OF THE GROUP’S PERFORMANCE

GROUP EARNINGS
Third Quarter FY2012-13
SIAEC Group posted a profit attributable to owners of the parent of $67.0 million for the quarter ended 31 December 2012, which was $3.5 million or 5.5% higher than the corresponding quarter last year.

Revenue decreased $25.2 million or 8.3%, mainly from lower fleet management and project revenue. However, expenditure fell by $28.0 million or 10.2%, primarily from decreases in subcontract services, material costs, and an exchange gain during the quarter. Consequently, operating profit improved by $2.8 million or 9.9% compared to the same quarter last year.

Share of profits from associated and joint venture companies was $40.0 million, representing a contribution of 52.7% to the Group’s pre-tax profits.

Basic earnings per share rose by 5.0% to 6.08 cents.

Year-to-date (April – December 2012)
The Group recorded a profit attributable to owners of the parent of $204.2 million, an increase of $1.4 million or 0.7% higher than the corresponding period last year. Share of profits from associated and joint venture companies increased by $0.4 million or 0.3% to $118.8 million, representing a contribution of 51.5% to the Group’s pre-tax profits.

Operating profit at $97.2 million was $0.1 million or 0.1% higher compared to the same period last year. Revenue rose by $9.8 million or 1.1% to $863.2 million, mainly from an increase in materials and line maintenance revenue. Expenditure at $766.0 million was $9.7 million or 1.3% higher, primarily due to higher staff costs.

GROUP FINANCIAL POSITION
As at 31 December 2012, equity attributable to owners of the parent amounted to $1,219.6 million, $34.7 million or 2.8% lower than at 31 March 2012. The decrease was mainly due to the payment of the final dividend in respect of FY2011-12 and interim dividend for FY2012-13, partially offset by profit earned for the period.

Total assets amounted to $1,529.0 million, a decrease of 4.4% from 31 March 2012. Net asset value per share as at 31 December 2012 was 110.6 cents.

The Company has no borrowings and the cash balance of the Group was $429.7 million as at 31 December 2012.

OUTLOOK
The Group’s core business is expected to remain stable in the last quarter of FY2012-13. Prevailing uncertainties in the world’s major economies will continue to impact the aviation industry. We will maintain our focus on cost control and productivity improvements.