SIA Engineering +0.2%; 2Q13 net profit down 5.8%

SIA Engineering is up 0.2% at $4.17, outperforming the STI’s 0.2% decline slightly after reporting its fiscal-2Q13 net profit fell 5.8% on-year to $67.1 million on higher operating costs and forex losses.

The results are in line with expectations, says Lim Siew Khee, an analyst at CIMB. She doesn’t expect the forex losses to be a concern, unless the USD weakens further; she notes the losses are translation losses.

She is keeping an Outperform call, noting the stock’s dividend yield is about 5%. Orderbook quotes suggest the stock isn’t likely to break out of its $4.16-$4.20 intraday range.