11.11.2012

Crane rental boosts Tat Hong

Singapore based crane and equipment company Tat Hong has announced a strong first half boosted by a steep rise in its crane rental operations.

Total revenues for the six months to the end of September were up 26 percent to $431.3 million, while pre-tax profits jumped 76 percent to $50.9 million.
Crane rental was drove the improvement with mobile crane rental up 58 percent to $161 million with increases across all of its regions. Tower crane rental on the other hand which is increasingly focused on China was up 28 percent to $37.8 million. Distribution, still the group’s largest single division grew by 13 percent to $182 million and general rental – largely in Australia – was up four percent.

Looking at the second quarter total revenues climbed 18 percent to $216 million with pre-tax profits up 25 percent to $24.6 million. Crane rental once again led the charge, rising 52 percent with tower crane rental up 27 percent, general equipment flat and distribution up just one percent.

Managing director Roland Ng said: “The slew of infrastructure and oil and gas projects that have come on-stream have boosted crane rental revenues from our major markets such as Australia, Singapore, Malaysia, Thailand, Hong Kong and China. As many of these are long term projects, we are upbeat about our crane rental performance in the coming months."

“We are also starting to see an increasing proportion of our revenues being contributed by the Crane Rental and Tower Crane Rental business which is reflective of the buoyant market conditions. We have put in a lot of effort to invest and nurture our overseas crane rental business and we are glad to see our investments bearing fruit.”

Vertikal Comment

Another strong set of numbers from Tat Hong, with a confident view on the year as a whole, all this in spite of the slower growth being reported in some of the company’s markets.

The company is in a good place at the moment thanks to some astute moves over the past two years or so.