Tat Hong benefits from Australian upturn

Tat Hong Holdings saw its revenues rise 11% in the six months to 30 September 2003 to Singapore$108.22m (US$63.12m).

Net profit after tax was up 105% to $S6.74m (US$3.93m).

Tat Hong, which is listed on the Singapore stock exchange, is Hitachi-Sumitomo's sole distributor for Australia, Singapore, Hong Kong, Malaysia, Thailand and Brunei. It also has extensive crane rental operations. Australia contributed to 60% of the group's turnover during the period.

The profit increase was attributed to a combination of increased equipment sales in Australia, improved rental turnover as a result of strong demand for cranes from the infrastructure and the oil and gas sectors, and improved rental rates on larger capacity cranes. There was also a gain of S$2.5m (US$1.5m) from the sale of some older equipment in fleet, a reduction in the costs of sales and an exchange gain of S$1m (US$560,000).

The company has also placed a US$11m order for nine Hitachi-Sumitomo crawler cranes ­ eight of the 250 tonners and one 650 tonner ­ for its Australia rental fleet.