rightful civvies: Singapore Airlines shares fall on Q4 earnings, tough outlook

Friday, May 17, 2013

SINGAPORE, May 17 (Reuters) - Shares of Singapore Airlines

Ltd (SIA) fell as much as 3 percent after Asia's

second-largest carrier reported weaker-than-expected full-year

results and warned of a tough outlook amid competition from Gulf

carriers and low-cost regional rivals.

SIA shares fell as low as S$11.11 on Friday, the weakest

level since May 7.

SIA said on Thursday net income rose nearly 13 percent to

S$379 million ($304 million) for the year to March 31, below an

average forecast of S$409.6 million, according to Thomson

Reuters StarMine SmartEstimates.

The fourth-quarter profit of S$68.3 million was also below

market estimates. Full-year operating profit fell nearly 20

percent, with the airline blaming persistently high fuel prices

and the global economic slowdown.

OCBC Investment Research downgraded the stock to "sell" from

"hold" and cut its target price to S$10.00 from S$10.85.

"With the lacklustre results, continuing challenges ahead,

and possible disappointment over the lack of a special dividend

that some on the street had anticipated, we expect selling

pressure on the counter, especially after it gained around 8

percent since mid-April," OCBC said.

(Reporting by Eveline Danubrata)

rightful civvies