Tiong Woon Corporation returns to profit with S$4.1m in 3Q13

Heavy Lift and Haulage segment booming.

In a release, Mainboard-listed Tiong Woon Corporation Holding reported for the third quarter ended 31 March 2013 (3Q2013), that the Group registered revenue of S$45.3 million, an increase of 29 per cent over the S$35.1 million it recorded in the corresponding quarter of financial year 2012. The rise was mainly due to rise in contributions from Heavy Lift and Haulage, Fabrication and Engineering, and Trading segments.

The main contributor to total revenue came from Heavy Lift and Haulage segment, which was up by 29 per cent to S$35.6 million, compared to a year ago. The rise was mainly due to the increase in heavy lift and installation projects undertaken by the Group in the Asia Pacific region. Fabrication and Engineering segment’s revenue went up by 182 per cent to S$5.8 million due mainly to revenues from engineering projects executed during the quarter.

Trading segment’s revenue was up 68 per cent to S$1.2 million as the Group sold more equipment in the current quarter. However, Marine Transportation segment’s revenue dropped to S$2.7 million due to fewer integrated haulage and marine projects undertaken by the Group during the quarter.

Gross profit for the Group went up by 70 per cent to S$11.2 million for the quarter ended 31 March 2013, mainly due to the increase in turnover and margins from Heavy Lift and Haulage, and Trading segments. Gross profit margin was 25 per cent compared to 19 per cent in the same corresponding quarter. The Group registered a profit before tax of S$4.1 million compared to a loss of S$1.1 million in the previous corresponding quarter.

This resulted in the first nine months ended 31 March 2013 with a 32 per cent rise in revenue to S$145.0 million and S$13.1 million in net profit attributable to equity holders of the Company. In the corresponding nine months of financial year 2012, the revenue was S$109.7 million and net profit attributable to equity holders of the Company was S$0.9 million. The increased revenue for the first nine months ended 31 March 2013 was mainly attributed to the increase in contributions from the Heavy Lift and Haulage, Fabrication and Engineering, and Trading segments. Compared to a year ago, the Heavy Lift and Haulage segment was up 35 per cent to S$110.1 million, Fabrication and Engineering segment up 85 per cent to S$17.4 million, and Trading segment up 72 per cent to S$9.4 million.

Gross profit went up by 59 per cent to S$38.7 million compared to S$24.4 million a year ago. Gross profit margin was 27 per cent compared to 22 per cent of the same corresponding nine months. As a result of the improved profits, earnings per share rose significantly to 2.81 Singapore cents compared to 0.20 Singapore cent in the nine months of financial year 2012.

Mr Ang Kah Hong, Tiong Woon’s Group Chairman and Managing Director was delighted with the Group’s financial performance. He said: “Despite the prevailing economic uncertainties and competitive environment in which Tiong Woon operates, our financial results have shown that we have done well. ”