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TAT Hong Holdings, the Asia-Pacific's largest crane-owning company, on Friday posted a net profit of S$2.8 million for the first quarter ended June 30, 2015, a 53 per cent decline from the corresponding period last year.
Total group revenue for Q1 FY2016 declined 15 per cent to S$139.3 million, from S$164.2 million in the year-ago period, due to a lack of contribution from a crane rental subsidiary divested in the second quarter of last year, translation loss from a weaker Australian dollar as well as weaker performance especially from the crane rental and general equipment rental divisions.
Excluding the decrease attributable to the disposed subsidiary and foreign-currency translation, group revenue would have declined 7 per cent.
Disposal of fixed assets as well as properties in Malaysia and Australia resulted in an increase in other operating income to S$14.1 million from S$4.2 million a year ago.
Operating costs were reduced by S$3.1 million in Q1 as a result of the divestment of a subsidiary and the cost control measures implemented, and financing costs fell S$0.7 million due to reduced borrowings compared with the same period a year earlier.
However, these cost savings were eroded by a net foreign-exchange loss of S$4.4 million due to the depreciation of the US dollar, Chinese yuan and Malaysian ringgit against the Singapore dollar.
The decline in contribution from associates and joint ventures to $0.1 million from S$1.4 million a year ago further dampened the group's performance, resulting in a 45 per cent decline in pre-tax profit to S$5.6 million in Q1 FY2016 compared with S$10.3 million in the same quarter last year.