SIA ENGINEERING POSTS GROUP PROFIT OF $69.0M FOR 1st QUARTER 2013-14

GROUP EARNINGS
SIAEC Group posted a profit attributable to owners of the parent of $69.0 million, a decrease of $1.1 million or 1.6% compared to the same quarter last year.

Revenue decreased $11.1 million or 3.7%, primarily due to lower material and fleet management revenue. Expenditure fell by $4.4 million or 1.7%, mainly from decreases in subcontract and material costs. The resulting operating profit for the quarter was $27.7 million, a decrease of 19.5%.

Associated and joint venture companies turned in a strong 14.0% growth in contribution for the quarter. Share of profits before tax at $45.6 million accounted for 58.0% of the Group’s pre-tax profits.

Basic earnings per share was 6.22 cents for the first quarter of FY2013-14.

GROUP FINANCIAL POSITION
As at 30 June 2013, equity attributable to owners of the parent amounted to $1,391.5 million, $89.6 million or 6.9% higher than at 31 March 2013.

Total assets increased by $118.1 million or 7.2% to $1,750.8 million. Net asset value per share of 125.3 cents was 7.6 cents or 6.5% higher than at 31 March 2013.

The cash balance of the Group as at 30 June 2013 was $628.7 million, an increase of $105.8 million or 20.2% compared to 31 March 2013.

OUTLOOK
With uncertainties facing the global economy, the operating environment continues to be challenging. However, the overall performance of the Group is expected to remain stable in the near term.

Marketing efforts to increase sales and measures to strengthen our competitiveness across our core businesses, coupled with initiatives to manage costs and improve productivity, will stand us in good stead.

Our existing collaborations and association with original equipment manufacturers place the Group in an advantageous position to seize growth opportunities in the region.