Written by The Edge
Tat Hong Holdings, one of the world’s top 10 crawler crane companies, reported net profit declined by 2% to $10.4 million for the three months ended June 30, 2010 (1QFY2011) compared to $10.6 million in its previous corresponding period (1QFY2010).
Revenue increased 24% from $120.1 million in 1QFY2010 to $148.8 million in this quarter with better performance from all divisions, except General Equipment Rental.
Revenue from its Distribution division jumped 41% from $50.0 million in 1QFY2010 to $70.7 million in 1QFY2011, boosted by higher sales figures from the group’s Australian and Singapore subsidiaries.
The Crane Rental division registered a slight 4% improvement in revenue to $44.6 million in 1QFY2011 mainly due to higher revenue contribution from Australia.
Revenue for the General Equipment Rental division decreased 14% from $19.3 million in 1QFY2010 to $16.7 million in 1QFY2011, hit by winding down of Railcorp contracts.
Tower Crane Rental’s revenue leaped 113% from $7.9 million in 1QFY2010 to $16.9 million in 1QFY2011.
The group’s gross profit rose in tandem with the improved revenue, from $47.3 million in 1QFY2010 to $54.5 million in 1QFY2011. However, due to Crane Rental’s lower margin contribution, gross profit margin decreased 2.8 percentage points to 36.6% this quarter.
Tat Hong continued to enjoy a robust balance sheet, with cash position strengthening to $87.2 million and shareholders’ equity improving to $499.5 million as at June 30, 2010. The group’s net gearing remained healthy at 0.44 as at June 30, 2010.
Dividend : None
