Tat Hong crashes into a $5.4m net loss

All segments reported weaker turnover.

Tat Hong Holdings Ltd Asia-Pacific’s largest crane rental company and the world’s eighth largest crane-owning company in terms of aggregate tonnage, reported a net attributable loss of S$5.4m in 2Q17.

This came as the group posted a 20% in overall revenues to $109.8m. With the exception of the Tower Crane Rental division, all other business divisions reported weaker turnover, with gross profit falling 21% to $34.3m.

Meanwhile, lower gains from the disposal of plant, property and equipment resulted in a 45% decline in Tat Hong's other income to $3.8m from $6.9m.

Tat Hong's managing director and CEO Roland Ng San Tiong said the impact of the challenging market conditions is evident in their quarterly results.

"As macro conditions in the region are not expected to improve in the near future, the Group’s efforts in
operational restructuring and cost containment will continue,” he said.

He furthered, "Our Tower Crane Rental division in the People’s Republic of China continued its strong performance with an improvement of 21% in the division’s RMB-denominated turnover. Utilisation rate for the tower crane fleet has reached 83% and due the long term nature of the projects that the tower cranes are involved in, we expect the high utilisation rate to continue.”