Singapore Airlines 2004 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2004 Singapore Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

42 SIA Annual Report 03/04
Financial Review
Group Revenue and Expenditure
$ Million
$ Million
1999-00 2000-01 2001-02 2002-03 2003-04
Revenue
Expenditure
12,000
10,000
8,000
6,000
4,000
2,000
0
12,000
10,000
8,000
6,000
4,000
2,000
0
140
105
70
35
0
Group Profitability Ratios
Cents
Percent
1999-00 2000-01 2001-02 2002-03 2003-04
Basic Earnings Per Share (¢)
Return on Turnover (%)
Return on Average Shareholders’ Funds (%)
Return on Average Total Assets (%)
25
20
15
10
5
0
Group Operating Profit, Profit Before Taxation
and Profit Attributable to Shareholders
$ Million
$ Million
1999-00 2000-01 2001-02 2002-03 2003-04
Profit Before Taxation
Profit Attributable to Shareholders
Operating Profit
2,000
1,500
1,000
500
2,000
1,500
1,000
500
Performance of the Group
Group Earnings
Profit attributable to shareholders fell 20.2 per cent from the previous financial year to $849 million. The confluence of the
war in Iraq and the outbreak of Severe Acute Respiratory Syndrome (SARS) caused steep decline in passenger demand
during the first quarter, resulting in the Group’s first ever quarterly loss of $312 million. However, the strong business
recovery post SARS and cost control measures enabled the Group to return to profitability from the second quarter. The last
three quarters returned a profit attributable to shareholders of $1,161 million, which more than offset the first quarter loss.
Operating profit fell $37 million largely due to lower operating profits from the Company (–$59 million) and three of its
major subsidiary companies: Singapore Airport Terminal Services (SATS) group (–$37 million), Singapore Engineering
Company (SIAEC) group (–$62 million) and SilkAir (–$11 million). On the other hand, Singapore Airlines Cargo (SIA Cargo)
posted a record operating profit of $202 million, more than triple last year’s profit.
Group revenue contracted 7.2 per cent to $9,762 million, while expenditure shrank 7.3 per cent to $9,082 million. A lower
profit-sharing bonus of $161 million (–$143 million), payable in accordance with the staff’s profit-sharing plan, accounted
for 20.0 per cent of the reduction in expenditure.
Profit before taxation was $821 million, down 16.0 per cent from the previous year. The $156 million decrease was due
mainly to lower operating profit, share of profits of associated companies and surplus on disposal of aircraft (including
spares and spare engines), and retrenchment and early retirement expenses (included under exceptional items). A tax write-
back of $205 million arising from a 2 percentage points reduction in the Singapore statutory tax rate to 20.0 per cent
helped to boost profit attributable to shareholders to $849 million.
The Group’s earnings per share (basic) fell 17.7 cents to 69.7 cents.
Profitability ratios of the Group are as follows:
2003-04 2002-03 Change
% % % points
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Return on turnover 9.2 10.6 – 1.4
Return on average total assets 4.6 5.9 – 1.3
Return on average shareholders’ funds 7.7 10.4 – 2.7
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––