SIA Engineering Company

[CityFarmer]

SIA Engineering set to ride regional travel boom

SIA Engineering Co., Asia’s second- largest aircraft maintenance company, is set to gain from a travel boom in the region, according to Maybank Kim Eng Holdings and Samsung Asset Management.

Net income at the unit of Singapore Airlines, Asia’s second-biggest carrier by value, will increase by an average of 6.4% annually over the next three years through March 2016, according to analyst estimates compiled by Bloomberg. SIA Engineering has climbed 13% this year, the second-biggest advance on the benchmark Straits Times Index.

Carriers from Asia-Pacific, the world’s biggest aviation market, will lead orders for new aircraft, Airbus SAS Chief Operating Officer John Leahy said in February. The region will add about 380 million travelers between 2012 and 2016 to 1.2 billion, the International Air Transport Association has said

http://www.theedgesingapore.com/the-dail...-boom.html

[Jon-san]

http://www.channelnewsasia.com/news/sing...44240.html

Anyone picked up on this?

[pianist]

he was a lead technician from my.

recently there has been many work-related fatal accidents...something is amiss?

[kbl]

if opportunity arises, I will swap SATS for SIA Eng.

**The Company has no borrowings and the Group’s cash balance stood at $465.8 million as at
30 September 2013.**


http://infopub.sgx.com/FileOpen/SIAENGCO...eID=263088



7cts dividend.

<not vested>

[CityFarmer]

For those vested and interested...

SIAEC’s Q3 profit down 9.7%

SINGAPORE – SIA Engineering (SIAEC) on Monday reported a 9.7 per cent fall in net profit in its fiscal third quarter as it warned of an uncertain near-term global economic outlook.

For the three months ended December, net profit fell to S$60.5 million, even as revenue increased by 2 per cent to S$283.8 million, SIAEC said.

Expenditure was 4.7 per cent higher at S$258.6 million, mainly from staff costs, subcontract and material costs. There was also a smaller exchange gain of S$0.1 million in the current period as compared with a gain of S$1.6 million in the third quarter of last year.
...
http://www.todayonline.com/business/siae...it-down-97

[Tiggerbee]

For those vested and interested...

SIAEC’s Q3 profit down 9.7%

SINGAPORE – SIA Engineering (SIAEC) on Monday reported a 9.7 per cent fall in net profit in its fiscal third quarter as it warned of an uncertain near-term global economic outlook.

For the three months ended December, net profit fell to S$60.5 million, even as revenue increased by 2 per cent to S$283.8 million, SIAEC said.

Expenditure was 4.7 per cent higher at S$258.6 million, mainly from staff costs, subcontract and material costs. There was also a smaller exchange gain of S$0.1 million in the current period as compared with a gain of S$1.6 million in the third quarter of last year.
...
http://www.todayonline.com/business/siae...it-down-97

Q3 earnings is the worst so far for FY 2013-2014. Operating margin fell from 11.1 to 8.9%, on higher labour and sub contract costs. Associate and JV companies earnings growth (qtr on qtr), which had more than compensated for its lack luster earnings in the past 2 qtrs, is also the weakest so far for FY 2013-2014.

[kayhian]

SIA Engineering Company (SIAEC) posted a 1.1 per cent dip in fourth-quarter net profit to S$65.2 million, on lower dividends from long-term investments and contributions from joint-venture firms.

Revenue for the quarter ended March 31, 2014 rose 9.7 per cent to S$311.1 million, driven mostly by airframe and component services.

For the full year, profit shrank 1.6 per cent to S$265.7 million, while revenue rose 2.7 per cent to S$1.18 billion.

The group declared a special dividend of five Singapore cents per share on top of a final ordinary dividend of 13 Singapore cents per share. This comes on the back of an interim dividend of seven Singapore cents a share. The year before, SIAEC declared a final ordinary dividend of 15 Singapore cents a share, no special dividend and an interim dividend of seven Singapore cents a share.

Happily vested

[kayhian]

http://boeing-sia-engineering-jv-idUSL4N0PK3BW20140709

(Reuters) - Boeing Co and SIA Engineering Co Ltd plan to set up a Singapore-based joint venture to provide fleet management services to airlines in the Asia-Pacific region, the companies said on Wednesday.

Boeing will hold a 51-percent stake in the new company while SIA Engineering, a subsidiary of Singapore Airlines Ltd , will take up the other 49 percent, they said.

The joint venture, expected to be formed by the end of the year, will be able to service Boeing 737, 747, 777 and 787 aircraft.

"The joint venture will be a game changer for the airline industry," William Tan, SIA Engineering's president and chief executive officer, said in a press release.

"It will set new standards for aircraft reliability and utilisation. It will also make fleet management solutions far more accessible, customisable and affordable for airlines. Aircraft ownership will be made much simpler."

[yawnyawn]

Turbulent quarter: SIA Engineering remains grounded as profits slide 22% in Q2

Share of profits of JVs and associates dropped 28.8%.

SIA Engineering has weathered a difficult quarter, as its 1QFY15 profits declined by 22.3% to S$53.5m.

According to OCBC, this made made up only 18.9% and 19.0% of our and consensus FY15 forecast respectively.

“1QFY15 operating profit decreased 25.3% to S$20.7m primarily due to higher subcontract costs (+33.3% to S$43.6m) though staff costs were lower (-8.6% to S$51.3m). Share of profits of JV and associates dropped 28.8% to S$30.6m, due to a S$11.6m decrease in contribution from the engine repair and overhaul centers,” noted OCBC.

Meanwhile, Maybank Kim Eng reports that EBIT margin contracted to merely 7.0%, its lowest since 1QFY3/10, as subcontract cost rose 4.5% YoY. Share of profits of associates and JVs fell 28.8% YoY to $30.6m due to a 37.8% fall in contribution from the engine repair and overhaul centres.

“Management turned bearish on its outlook, citing challenges from decline in heavy checks, reduction in engine shop visits and rising business costs,” stated Maybank Kim Eng.

http://sbr.com.sg/aviation/news/turbulen...e-22-in-q2

[Ben]

I attended the last AGM and walked away feeling unimpressed with the business as well as the BOD, especially the CEO. I would expect the CEO to be more vocal, taking most of the questions field by SHs. But that was not the case. Most of the questions were responded by the non-executive Chairman, and for a few questions answered by the CEO, it sound like text book answer to me. Of course, it is unfair to judge a person capabilities based on that short single meeting, but IMHO, he does not live up to my expectation as compared to other CEOs I met in other AGMs. That aside, I think the MRO business is getting very competitive, and therefore, not as attractive as before.