Revenue fell 21.8% year-on-year from SGD19.4m ($14.2m) to SGD15.2m ($11.1m). During a competitive year, rental rates declined; in fact there was no trading income recorded in both H12010 and H12009 due to poor demand as there is a surplus of cranes in Singapore.
Gross profit decreased by 43.8% to SGD60m ($44m) in the first half of 2010, showing a gross profit margin of 39.9%; accountable to higher costs of sales and lower rental rates.
Executive chairman and CEO of Hiap Tong, Ong Teck Meng, said: “We have managed to remain profitable despite an increasingly challenging business environment. Although our niche lies in the high tonnage sector, we are not spared from the effect of the intense price competition in the low tonnage segment which saw an oversupply in this period.”
Hiap Tong has recently taken delivery of a 1,200t Liebherr LTM 11200-9.1. all terrain crane, which will be used in China for the formation of wind turbines and windmill maintenance from September 2010.
