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Tat Hong expects losses for Q4 and FY2016
HEAVY equipment supplier Tat Hong Holdings said on Friday it is expected to report losses for its fourth quarter and the full year ended March 31, 2016.
This is primarily attributable to costs incurred by its exit of the excavator distribution business in Indonesia, foreign-exchange losses, non-cash impairment charges on goodwill and assets for its Australian subsidiary, as well as a non-cash impairment of its investment in an associated company.
The group clarified that even though the value of the non-cash impairment charges is yet to be confirmed, it is expected to be significant for the group's fourth-quarter and full-year financial results.
Further details will be disclosed in the group's financial statements for FY2016, which will be released on or around May 27.
The mainboard-listed crane supplier has been troubled with issues of oversupply in the cranes market.
In its third quarter ended Dec 31, 2015, Tat Hong reported a net loss of S$6.7 million, citing weak demand for cranes in Singapore, Thailand and Vietnam.
On March 15, the group announced it was considering a potential takeover offer.
Tat Hong's shares closed 0.5 Singapore cent lower at 51 Singapore cents on Friday.