SIA engineering second quarter net profit plunges 20%

SIA says it will restructure and streamline operations to cope with global economic uncertainties.

SIA Engineering second quarter net profit plunges 20%
Ground crew are seen near the engine of a Singapore Airlines' Airbus A380 superjumbo at Singapore's Changi airport November 11, 2010. Singapore Airlines said on Thursday it was in full compliance with safety directives from the European Union on the Rolls Royce engine used on Airbus A380s and does not plan flight cancellations. REUTERS/

Aircraft maintenance firm SIA Engineering said net profits dropped 20 percent to $35.5 million for the quarter ended 30 September. Total revenue for the quarter stood largely unchanged at $264.8 million. SIA Engineering declared an interim dividend of four cents per share.

For the half-year under reporting, SIA Eng recorded a profit of $233.9 million, an increase of $148.1 million. Operating profit was $22.9 million, a decrease of $25.0 million or 52.2 percent, the company said in a statement.

Share of profits from associated and joint venture companies in the second quarter was $17.2 million, $1.5 million, 8 percent lower than the same quarter last year. Contributions from the engine repair and overhaul centers were 18.8 percent lower at $9.5 million.

SIA Engineering, a major provider of aircraft maintenance, repair and overhaul services in Asia-Pacific, said it will restructure and streamline operations as it tries to cope with the global economic uncertainties.

"The Group is also pursuing strategic partnerships and undertaking initiatives to strengthen its ompetitiveness for long term growth, including investing in new technologies and advancing innovation," SIA said in a statement.

During the quarter, SIA completed the merger of Singapore Aero Engine Services and International Engine Component Overhaul, it said. It also approved the integration of International Aerospace Tubes-Asia and Component Aerospace Singapore.