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PR Newswire
15-11-2010, 07:10 AM
Published November 15, 2010
Tat Hong Q2 profit rises 7% to $7.08m
By JAMIE LEE
Tat Hong Holdings has posted a 7 per cent increase in second-quarter net profit, propped up by higher sales. The crane rental firm posted a profit of $7.08 million for the three months ended Sept 30, compared with a net profit of $6.65 million a year ago.
This translates to earnings per share of 1.24 cents for the period, down from 1.32 cents a year ago. The company said that as at Sept 30, it had a contractual obligation to convert 50.66 million warrants into 50,66 million new shares.
Revenue was up 20 per cent at $146 million, thanks to stronger sales at its distribution, crane rental and tower crane rental divisions.
The distribution business, which makes up the biggest proportion of sales, was up 19 per cent at $64.4 million, on higher sales of crawler cranes.
Gross profit margin, however, fell to 37 per cent from almost 40 per cent a year ago. This is partly due to slimmer margins from the crane rental division with the scale-down of major projects in Singapore and Malaysia that commanded high premium rates, as well as lower margins from the distribution division due to competition.
Other operating expenses, the biggest expense component, surged 30 per cent to $35.9 million due to higher staff costs, an impairment for remaining goodwill associated with Kingston Industries - a subsidiary in Australia - and higher upkeep expenses for machinery and vessels in Australia.
For the half-year, Tat Hong posted a 2 per cent rise in net profit to $17.5 million, with revenue ending 22 per cent higher at $294 million.
Tat Hong Q2 profit rises 7% to $7.08m
By JAMIE LEE
Tat Hong Holdings has posted a 7 per cent increase in second-quarter net profit, propped up by higher sales. The crane rental firm posted a profit of $7.08 million for the three months ended Sept 30, compared with a net profit of $6.65 million a year ago.
This translates to earnings per share of 1.24 cents for the period, down from 1.32 cents a year ago. The company said that as at Sept 30, it had a contractual obligation to convert 50.66 million warrants into 50,66 million new shares.
Revenue was up 20 per cent at $146 million, thanks to stronger sales at its distribution, crane rental and tower crane rental divisions.
The distribution business, which makes up the biggest proportion of sales, was up 19 per cent at $64.4 million, on higher sales of crawler cranes.
Gross profit margin, however, fell to 37 per cent from almost 40 per cent a year ago. This is partly due to slimmer margins from the crane rental division with the scale-down of major projects in Singapore and Malaysia that commanded high premium rates, as well as lower margins from the distribution division due to competition.
Other operating expenses, the biggest expense component, surged 30 per cent to $35.9 million due to higher staff costs, an impairment for remaining goodwill associated with Kingston Industries - a subsidiary in Australia - and higher upkeep expenses for machinery and vessels in Australia.
For the half-year, Tat Hong posted a 2 per cent rise in net profit to $17.5 million, with revenue ending 22 per cent higher at $294 million.
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