These 2 Companies Recently Delivered A Mixed Business Performance In Their Latest Quarterly Earnings

We’re back in the earnings season again!

As it is with every earnings season, there will be some companies posting growth, some delivering a mixed performance, and some experiencing declines in their business. So, which are the companies that have turned in a mixed performance with their latest earnings releases? Let’s look at two of them:

1. SIA Engineering Company Ltd (SGX: S59) released its latest results, for the quarter ended 31 December 2016, three weeks ago. As a quick background, SIAEC specialises in providing aircraft maintenance, repair, and overhaul (MRO) services. It counts over 80 international airlines around the world as its customers.

In its reporting quarter, the company saw its top-line decline by 1.1% compared to a year ago. But, SIAEC managed to post a 6.5% increase in profit. The company benefitted from gains on the partial sale of an associate and the absence of impairments and provisions for closure costs that appeared in the same quarter a year ago.

SIAEC has continued to form joint ventures. For example, during the quarter, the company signed an agreement with Moog Inc. to establish a Singapore-based joint venture to overhaul Moog’s products, which include components on flight control systems for new-generation aircraft, such as the Boeing 787 and the Airbus A350. SIAEC thinks that its joint ventures help to positon itself well for the long-term.

But, SIAEC also warned in its earnings release that the “aerospace industry remains challenging in the face of persisting global economic uncertainties.”

2. Luxury watch retailer Hour Glass Ltd (SGX: AGS) is another company that has reported a mixed performance recently. Its latest earnings were released two weeks ago.

In the three months ended 30 December 2016, Hour Glass’s revenue had increased by 5% compared to the same quarter a year ago. Yet, its profit attributable to shareholders had fallen by 8% year-on-year.

The company, which has over 40 boutiques in the Asia Pacific region, said that the “watch industry in 2016 suffered from a contraction in global demand and the process of rightsizing production output to the consumers’ needs continues.”

Speaking on its future, Hour Glass sees uncertainties in the global economy impacting consumer sentiment and thus discretionary spending. But, the company still expects to be profitable for its fiscal year ending 31 March 2017.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.