You are here

Tat Hong's Q1 profit falls 53% to S$2.8m

Friday, August 14, 2015 - 19:16

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.

sentifi.com

Market voices on:

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.

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom