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Tat Hong issues Q4 profit warning
CRANE operator Tat Hong on Friday said it is expected to report a loss for its fourth quarter ended March 31, 2015.
"Notwithstanding this, the group expects to remain profitable for FY2015, as its underlying performance in Q4 FY2015 remained stable," it added in a profit guidance statement.
"The anticipated recovery in activity levels in the Australian construction sector did not materialise amidst the protracted sluggish Australian economy. The challenging business conditions have resulted in a weak performance of the group's wholly owned Australian subsidiary group which is expected to recognise significant charges for the impairment of goodwill and assets in its Q4 FY2015 financial results. The aforesaid accounting impairment charges are non-cash in nature," it said.
It will disclose further details in its audited financial statements on or around May 29, 2015.
In its third quarter ended Dec 31, 2014, it had reported a 63 per cent drop in net profit to S$4.5 million, due to weaker performances from all its divisions except one - the tower crane rental division. At the time, it had said: "The general equipment rental division is expected to remain stable in view of the anticipated recovery in activity levels in the Australian construction sector."
Shares of Tat Hong ended flat at S$0.665 on Friday before the announcement was made.