SIA Engineering's net profit crashes 81.8% to $36.2m

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Due to the lack of divestment gains it recorded last year.

SIA Engineering Company's earnings for the quarter ending in June crashed by 81.8% to $36.2m, down from the $198.4m net profit it recorded last year.

According to the group, last year's net profit was boosted by a gain from the divestment of its 10% stake in Hong Kong Aero Engine Services to Rolls-Royce Overseas Holdings Limited and Hong Kong Aircraft Engineering Company Limited.

Excluding the impact of the divestment, profit for the quarter would have only been 4.7% lower.

For the said quarter, its revenue of $272.8m was 0.4% higher than last year's $271.6m.

Meanwhile, its expenditure decreased by $18.5m or 6.8% to $254.7m, mainly due to a provision made in the same quarter last year for the estimated increase in the profit-linked component of staff remuneration arising from the gain on divestment, based on profitability-related key performance indicators. Operating profit for the current quarter amounted to $18.1m, $19.7m higher compared to the operating loss of $1.6m last year.