14.08.2008

Tat Hong up 39%

Singapore based crane sales and rental company Tat Hong has announced a 39 percent increase in first fiscal quarter revenues to S$191.3 million ($136 million) while pre tax profits leapt 60 percent to S$ 41.6 million ($29.6 million).

Revenues were made up as follows:

Equipment sales remained the largest single division with revenues up 39 percent to S$92.9 million ($66 million) representing over 48 percent of the group’s total. Sales growth came from Singapore, Australia, Indonesia, Malaysia and Vietnam.

Crane Rental revenues increased by 21 percent to S$43.6 million ($31 million) – 22.8 percent of the total -This was partly due to the acquisition of Bradshaw Ultra Heavy Haulage of Australia, acquired at the end of last year by Tutt Bryant, along with improved rates as a result of a crane shortage which also led to higher utilisation. Increased business from the power plant sector in Indonesia and other markets also contributed.

General rental revenues were up 43 percent to S$36.2 million ($25.8 million) - 18.9 percent of group revenues. This due to a strong performance from Tutt Bryant subsidiaries such as North Sheridan and newly acquired Caradel Hire, as well as increased revenue from the group’s rail maintenance division in Australia.

Parts and Services contributed S$13.4 million ($9.5 million) up 31 percent on the same period last year, from spare parts and service sales, training and scaffold erection.

Finally the new tower crane division turned in revenues of S$5.3 million ($3.8 million)

The company says that prospects in the Asia-Pacific region continue to look rosy for the group.

Roland Ng Tat Hong’s president and chief executive officer said: “Our strong first quarter performance has propelled our financial year for 2009 to a good start. The sustained demand and ongoing supply shortage of cranes and equipment in the region will continue to support our growth in sales as well as margin in the current financial year.”

“The crane and equipment supply shortage situation in the region has been persisting for over a few years, and there seems to be no sign of letting up. It is also encouraging that regional governments are investing more into infrastructure and energy related projects in their respective countries. Against this backdrop of supply shortage and increased spending by the public sector, we remain confident of the group’s growth for the rest of FY2009.”

"The group maintains its optimism about the growth of the tower crane rental market in China, and believes that ongoing and impending major projects in Singapore will also support its growth for the near future.”