Tat Hong Records 78% Increase In 2QFY2012 Net Profit To S$12.6 Million

SINGAPORE – 9 November 2011 – Tat Hong Holdings Ltd (“Tat Hong” or “the Group”), Asia’s largest crane company and the world’s top crane company (in terms of number of crawler cranes)1, today reported a net profit after tax and minority interest of S$12.6 million on the back of revenue totalling S$183.3 million for the second quarter ended 30 September 2011 (“2QFY2012”).

Revenue growth was seen across all business divisions, resulting in an overall increase of 26% in gross profit from S$53.9 million to S$67.9 million in the latest quarter. Gross profit margin remained at a respectable 37.1%.

On a quarter-on-quarter comparison, the Group’s total operating expenses increased by approximately 9% in 2QFY2012 to S$45.3 million. This was mainly due to increased staff costs and costs in the upkeep of machinery as a result of a higher level of rental activities. The quarter under review also saw a lower write-back of doubtful debt allowance compared to the previous corresponding quarter. Net foreign exchange loss in 2QFY2012 was significantly lower at S$0.3 million as compared with S$1.7 million in the previous corresponding quarter.

The Group’s earnings per share on a fully diluted basis was 2.22 cents for 2QFY2012 against 1.24 cents for the previous corresponding quarter. Net asset value per ordinary share as at 30 September 2011 was S$0.94.

Tat Hong has proposed an interim dividend of one Singapore cent per ordinary and convertible redeemable preference share, to be payable on 2 December 2011.

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By Karen Ng

11th May 2010 – Singapore Business Times - TAT Hong took a long time to get where it is today. But now, it looks set to conquer the world. It is Asia’s third biggest crane owner – and one of the world’s largest crawler crane lessors.

Mainboard-listed Tat Hong started as an earth-moving equipment trading company back in the early 70s. On the way, it identified lucrative opportunities for crane and equipment rental, especially during downturns, when companies preferred to rent rather than buy equipment. (more…)

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