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Tat Hong Reports 23-Percent Fiscal 2012 Revenue Growth

Tat Hong Holdings, Asia-Pacific's largest crane company, this week posted a 23-percent increase in revenue to SGD $719.8 million (about U.S. $563.4 million) for the 12 months ended March 31, from SGD $584.2 million in fiscal 2011. The company reported all business divisions, except Tower Crane Rental, experienced double-digit revenue growth contributing to the 26-percent increase in gross profit of SGD $263.0 million for fiscal full-year 2012 from SGD $208.5 million in the year-ago period. Gross profit margin increased 0.8 percentage points to 36.5 percent mainly attributable to the improved rental rates and higher utilization from the Crane Rental and General Equipment Rental divisions.

For the fiscal fourth quarter ended March 31, net profit attributable to shareholders was SGD $11.2 million, a 192-percent increase. On a quarterly basis, all four core business divisions recorded revenue growth, resulting in revenue increase of 19 percent to SGD $181.9 million and gross profit surging 35.3-percent higher to SGD $71.7 million on gross profit margin of 39.4 percent in the quarter.

The Group's Crane Rental division generated SGD $225.0 million in revenue in full-year 2012 compared to SGD $185.0 million in 2011. This was due to higher revenue generated by the Singapore unit through increased activities and rental to overseas markets including Papua New Guinea, Vietnam, Indonesia and Thailand. Locally, the Singapore unit also enjoyed higher rental demand from construction activities on Jurong Island as well as MRT and housing projects.

Revenue generated by the General Equipment Rental division rose 39 percent to SGD $96.9 million, mainly driven by the continuing strong demand in Australia from recovery efforts and re-building programs following the natural disasters that occurred in 2011.

Revenue generated by the Tower Crane Rental division increased by 3 percent to SGD $58.7 million as compared to the preceding year, due mainly to the overall increase in rental contracts in second-tier cities and the improved utilization rates achieved by Jiangsu Zheng He Tat Hong Equipment Rental Co. Ltd.

Headquartered in Singapore, Tat Hong has a combined rental fleet of nearly 1,400 mobile, crawler and tower cranes.

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