29.05.2008

Tat Hong rises 33%

Tat Hong the Singapore based crane sales and rental company with activities in Australia, Singapore, Malaysia, China and the Middle East has reported a strong set of results for the 12 months to March 31st.

Total revenues climbed by 33 percent to just under s$640 million ($638.8 million) while pre tax profits rose by 35 percent to s$131.7 million ($101 million).

In terms of geographic breakdown Australia contributed s$387 million ($283 million), ASEAN countries s$234 million ($171 million) and other- largely the Middle East s$18 million ($13 million).

Looking at the revenue split by type crane sales grew by 15 percent to s$306 million ($224 million). Tat Hong holds distributorships for Hitachi-Sumitomo, Kato, Terex and Linkbelt and is a major shareholder in Yongmao tower cranes.

Crane rental jumped 85 percent to s$167 million ($122 million) due to acquisitions in Australia of Bradshaw heavy transport and Muswellbrook Crane Services plus higher rates and improved utilisation due to crane shortages in its main markets.

General rental grew by 30 percent to s$114 million ($83.5 million) largely due to the acquisition of Sheridan North in Australia. The balance of the company’s revenues was derived from parts and service sales, which grew by 34 percent compared to last year.

The company is upbeat about the prospects for the 2008/2009

Roland Ng Tat Hong’s president and group chief executive officer said: “The Asia-Pacific region, including Singapore, continues to see increased governmental spending on infrastructural and energy-related projects. The Middle-East is experiencing a construction boom and there is vast potential for growth in tower crane rental in China. Given these promising prospects, we expect Tat Hong to continue to perform well as the Group continues to enjoy better margins from higher rental rates and sales prices and volume increases from higher utilisation of equipment.”