SIA Engineering

SIA Engineering: 4QFY14 results below estimates, as net profit slipped 1% to $65.2m despite a 10% gain in revenue to $311.1m, mainly due to a 5% decline in associate income from the engine repair and overhaul centres. Meanwhile, top line grew on the back of airframe and component services segment. This brought FY14 net profit to $265.7m (-2%) and gross revenue to $1,178.2m (+3%). SIA Engineering declared final DPS of 13¢ and special DPS of 5¢, taking FY14's total to 25¢, 14% above FY13's 22¢. Management cites the continued growth in the MRO services industry, although the upstream aviation sector faces competitive challenges, which may exert pressure on MRO rates.