SIA Engineering’s profit plunged 23.5% to $46.3m in Q3

Due to lower airframe and component overhaul revenue.

SIA Engineering Company (SIAEC) reported that its profit after tax and minority interest dropped 23.5% year-on-year to $46.3m in Q3.

The lower PATMI was mainly attributed to a 6.5% in revenue as well as a 33.2% decrease in share of profits from associated and JV companies.

According to OCBC, similar to the trends seen in the first half of its financial year, SIAEC’s 3QFY15 saw lower revenue from its airframe and component overhaul services (ACS) segment on lower heavy checks though mitigated by higher fleet management programme (FMP) and line maintenance (LM) revenue.

“We expect the issue of deferred aircraft checks to have a negative impact on SIAEC’s ACS revenue for the next 12 months. Hence, given the disappointing results and still-muted outlook, we decrease our FY15F and FY16F PATMI forecasts by 3.8% and 8.9%, respectively,” stated OCBC.