15.11.2009

Tat Hong down 34%

Singapore based international crane sales and rental group Tat Hong, with operations in Australia the Middle East and Pacific Rim, has reported second quarter revenues of s$121.5 ($87.6) million, down 34 percent on last year.

The greats fall was in cranes sales, which fell 51 percent to s$40.8 ($29.4) million, Mobile crane rental dropped 17 percent to s$40.5 ($29.2) million while tower crane rental, which is largely in China, increased 45 percent to s$8.8 ($6.3) million.

Pre-tax profits for the group dropped 65 percent to s$12.2 ($8.8) million.

The results for the half year were roughly in line with the second quarter, overall revenues declined 36 percent to s$241.6 ($174.2) million, made up of s$77.8 ($56.1) million in sales, a drop of 56 percent on the same period last year, mobile crane rental of s$83.2 ($60) million just 10 percent behind last year, and tower crane rental which increased 47 percent to s$16.8 ($12.1) million.

Pre-tax profits for the half year were s$28.5 ($17.7) million down 63 percent on the same period in 2008.

The company says that crane rental declined in Australia, the Middle East and Malaysia, but grew, thanks to oil and energy related work, in Singapore and Indonesia. Sales a good deal of which comes from Australia suffered from delayed orders due to finance and lack of confidence due to the current economic slowdown.

In spite of this the company says that it is seeing some stability returning to most of its markets and expects gradual growth to resume from the start of 2010. The group has seen borrowings increase during the period as it added to its business.