Asia Pacific’s largest crane rental company Tat Hong Holdings Ltd. reported a 14-percent year-over-year decline in its revenue to S$185.3 million (about U.S. $148.6 million) for the fiscal second quarter of 2014. Of its four business divisions – Crane Rental, Tower Crane Rental, General Equipment Rental and Distribution – only the tower crane division posted a year-over-year increase.
Net profit for Tat Hong was S$8.2 million (about U.S. $6.6 million), a 53-percent decrease compared to the same period last year. The company attributed the decline to a decline in profit contribution from wholly owned subsidiaries in Australia and from foreign exchange losses from its Indonesia operations.
For the first half of fiscal 2014, revenue declined 16 percent to S$ 360.8 million and net profit plunged 52 percent to S$16.5 million.
“Our results this quarter were impacted by unrealized foreign exchange losses, most of which arose from inter-company loans and payables in relation to our Indonesian operations,” said Roland Ng, Tat Hong managing director and group CEO. “While profit contributions from Australia are still below last year’s level, it has improved quarter-on-quarter as the cranes which were being relocated in the first quarter started generating income and as cost containment measures yielded results.”