By ANGELA TAN
SIA Engineering Company (SIAEC) reported on Friday that its net profit for the first quarter ended June 30, 2010 rose 56 per cent to S$70.8 million along with the recovery in the aviation industry.
Basic earnings per share was 6.54 cents for the quarter, an increase of 2.36 cents per share over the same period last year.
Revenue grew 18 per cent to S$288.3 million.
The improved revenue was contributed by airframe maintenance and component overhaul work and fleet management programme revenue.
SIAEC said expenditure increased by a lower $20.2 million or 8.7 per cent to $252.1 million, mainly reflecting higher material and staff costs to support the increase in maintenance, repair and overhaul work.
The company has no borrowings and the cash balance on June 30, 2010 was S$531 million, an increase of $105.2 million or 24.7 per cent compared to March 31, 2010.
Looking ahead, SIAEC said with the recovery of the aviation industry, the growth of traffic at Changi and the increased utilisation of aircraft by its customers are expected to have a favourable impact on its maintenance, repair and overhaul (MRO) business.
SIAEC's joint ventures have also started to recover, albeit at a more gradual pace.
