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Tat Hong in the red for Q3 on weak regional demand
TAT Hong Holdings posted a net loss of S$6.7 million, or 1.06 Singapore cents per share, for its fiscal third quarter on weak demand in South-east Asia and Australia.
The crane operator had a profit of S$4.5 million, or 0.72 Singapore cent per share, in the year-ago period.
For the nine months to December 2015, net profit was down 98 per cent to S$500,000, or 0.08 Singapore cent per share.
Revenue fell 19 per cent to S$124.8 million during the quarter. Crane rental revenue fell by 23 per cent to S$46.5 million due to completion of projects in Australia, Malaysia and Thailand.
The tower crane rental business saw a 4 per cent decline in revenue, to S$24 million. Distribution revenue dropped 23 per cent to S$43.3 million due to lower demand for cranes in Thailand, Vietnam and Singapore and reduced excavator sales in Indonesia.
Looking ahead, Tat Hong expects crane rentals to remain weak in South-east Asia and Australia. In the distribution business, the company expects weak demand to persist.
"The group is facing difficult economic and sectoral outlooks in its key markets and expects its performance to be depressed in FY2016," Tat Hong said. "Consequently, the group will continue to rationalise its operations and its defleeting exercise to reduce overall operating costs."