Crane company Tat Hong Holdings yesterday reported a net profit of $17.31 million for the fiscal second quarter ended Sept 30, 2012, up 37 per cent from $12.63 million a year earlier.

This was achieved on the back of an 18 per cent increase in three'month revenue to $215.97 million from $183.28 million. Earnings per share for the quarter were 3.01 cents, up from 2.22 cents a year ago.
Six'month profit surged 88 per cent year on year to $33.97 million from $18.11 million, while revenue rose 26 per cent to $431.27 million from $341.65 million. Earnings per share for the period were 5.91 cents, up from 3.18 cents.

Tat Hong's main businesses all registered growth during the quarter, with the crane business recording a 52 per cent increase in revenue to $81.38 million, boosted by Singapore's construction activities on Jurong Island and the MRT projects.

"The slew of infrastructure and oil and gas projects that have come on'stream have boosted crane rental revenues from our major markets such as Australia, Singapore, Malaysia, Thailand, Hong Kong and China," said managing director Roland Ng.

However, the improved performance in its Asian units, in addition to the contribution from a new franchise in Australia, were partially o'set by the lack of sales to Europe and Taiwan.

Its tower crane rental division saw a 27 per cent increase in turnover to $18.77 million, while revenue generated by the general equipment rental division was 'at at $26.04 million. The distribution division posted a marginal one per cent increase in revenue to $89.79 million for the three'month period.

Tat Hong had on Sept 18 undertaken the placement of 70 million new ordinary shares at $1.20 per share to raise $84 million in gross proceeds to fund crane 'eet expansion and the acquisition of land and buildings to cater to the expanded 'eet and for general corporate funding purpose.

Source: AmFraser