15.02.2012

Strong upsurge at Tat Hong

Singapore based crane sales and rental company Tat Hong has reported a strong increase in revenues for the third quarter and year to date.

For the nine months revenues were $537.8 million, an increase of 25 percent, which yielded a 30 percent increase in pre-tax profits to $46.9 million.

Looking at the third quarter, total revenues were $196.2 million, 43 percent higher than in the same quarter last year, while pre-tax profits were up 154 percent to $17.95 million.

The quarterly numbers were made up as follows: Distribution – new crane sales etc.. were $97.4 million - up 62 percent, Crane rental was up 32 percent to $57.7 million, general rental up 33 percent to $25.45 million and tower crane rental up 14 percent to $15.6 million

Managing director Roland Ng said: “We are pleased with our latest set of financial results, which showed improvement in revenue across all our business divisions. Moving forward, we will continue to seek out opportunities of high demand for our products and services in key growth markets, while keeping a tight lid on cost and other expenses.”

Vertikal Comment

This is a surprisingly strong set of numbers from Tat Hong and a good indicator of the health of the Pacific and Australian market for crane and equipment sales and rental.

The company has done well in most market sectors and countries in which it operates. The division that did least well – tower cranes is largely based in China, The 14 percent increase largely reflects a bigger crane fleet.

Tat Hong is a complex business to follow with all its minority and majority holdings with cross subsidiary investments etc… However it does appear to back on a strong upward growth trajectory.