UNREALISED foreign exchange losses arising from unfavourable currency movements dented results for Tat Hong Holdings in its fiscal first quarter.
The crane rental company sank into the red and recorded a net loss of S$3.6 million for the quarter, from net profit of S$2.8 million in the previous year, the group announced in a Singapore Exchange filing on Friday evening.
For the three months ended June 30, revenue dropped 16.2 per cent to S$116.7 million from the previous year.
The slide in revenue across three of its business segments - crane rental, general equipment rental and distribution - was largely due to protracted weakness in the construction and resources sector as well as lower demand for cranes in Singapore and overseas markets, Tat Hong said.
However, its tower crane rental division posted a 5 per cent increase in revenue on the back of higher utilisation rates for the quarter.
Cost savings from a 19 per cent fall in total operating costs to S$38.3 million from the previous year were partially eroded by higher net foreign exchanges losses which arose from the depreciation of the Australian dollar, US dollar and yuan against the Singapore dollar, and the appreciation of the yen against the Australian dollar and Singapore dollar, which were substantially unrealised, the group said.
It posted a loss per share of 0.57 Singapore cent, compared with earnings per share of 0.44 Singapore cent in the year-ago period.
Net asset value per share slipped to 0.91 Singapore cent as at June 30, from 0.93 Singapore cent as at three months ago.
Tat Hong shares closed 0.5 Singapore cent higher at 53.5 Singapore cents on Friday.