This will add further pressure on bottom line of SMRT, but other sectors will experience the same pressure with the recent labour crunch.
SMRT to increase staff salaries, incentives
SINGAPORE — Nine in 10 employees at public transport operator SMRT will see increases in base salaries, a productivity and performance incentive as well as an one-off payment, as part of wage revision exercise involving its non-executive employees, excluding its Bus Captains.
The new wage framework was developed following several months of industry review, a market benchmarking exercise, performance goals-setting and consultation with the National Transport Workers’ Union. Both parties inked a revised collective agreement today, which was witnessed by NTUC Secretary-General Lim Swee Say.
http://www.todayonline.com/singapore/smr...incentives
Ah...lower bottomline implies lower dividend. The bears may mauling at SMRT unless the government can agree to footing some of the CAPEX.
(08-03-2013, 09:01 PM)a74henry Wrote: [ -> ]Ah...lower bottomline implies lower dividend. The bears may mauling at SMRT unless the government can agree to footing some of the CAPEX.
Plus simple justifications:- No transport company can run without fare increase to keep up with the salary (aka company must make profit lo). Fare increase soon?
(09-03-2013, 03:39 PM)Temperament Wrote: [ -> ] (08-03-2013, 09:01 PM)a74henry Wrote: [ -> ]Ah...lower bottomline implies lower dividend. The bears may mauling at SMRT unless the government can agree to footing some of the CAPEX.
Plus simple justifications:- No transport company can run without fare increase to keep up with the salary (aka company must make profit lo). Fare increase soon?
Announcement of fare increase should be coming soon!
It will depend on the Public Transport Council decision. I wonder how many of these council members take the public transport in Singapore to make decisions for the majority of users.
SMRT CORPORATION LTD
(Registration No: 200001855H)
PROFIT GUIDANCE
FOR THE FOURTH QUARTER ENDING 31 MARCH 2013
The Board of Directors of SMRT Corporation Ltd (the “
Company
”) wishes to announce
that the Company and its subsidiaries (the “
Group
”)
are expected to report a net loss for
the fourth (4
th
) quarter ending 31 March 2013 (“
4Q FY2013
”).
This is in line with
deteriorating profitability
as indicated in Paragraph 7 of the Unaudited Financial
Statements for the Third Quarter ended 31 December 20
12.
Increasing operating costs without corresponding fare adjustments have
adversely
affected the Group’s profitability. In addition, the Directors are of the view that it is
appropriate to impair $17 million of goodwill in its associate, Shenzhen ZONA
Tr
ansportation Group Co. Ltd., which will result in a loss for
4Q FY2013
.
Notwithstanding the above, the Group is expected to be profitable for the full year ending
31 March 2013.
Further details of the Group’s performance will be disclosed when the Group
announces
its full year financial results.
Submitted by
Jacquelin Tay Gek Poh
,
Shenzhen ZONA is do bus business one right?
seems like nowadays bus business quite hard to make money
high capex and rising fuel cost are eating them alive
increasing the fares also not easy as its regulated by garmen
haizzz
Price attractive enough to buy?
(29-03-2013, 04:08 PM)happyharvest Wrote: [ -> ]Price attractive enough to buy?
Dont think it is a good idea to touch smrt, rates increase are never easy due to the political nature...
I seem to recall that they were making tonnes of money last decade that PTC agreed to relook at the fare adjustment formula?
I recall the most classic one was Marlboro Tan saying buses are expenses which commuters had to pay for the renewals. I didn't know buses were not revenue generating assets. Was wondering if I can get IRAS deduction for my car expense also.