Tiong Woon posts record profits

Tiong Woon Corporation Holding Ltd (TWC) announced a record net profit after tax and minority interest of S$28million (US$19.7 million) for the full year ending 30 June 2008. This represented an increase of 24% over the S$22.5 million ($15.9 million) it made in the same period the previous year.

Its turnover was at a record high, up 58% to S$157.8 million ($111.3 million) from S$99.8 million ($70.4 million). The increase in the Group's turnover was mainly attributed to the increase in contributions from its Heavy Lift and Haulage and Fabrication segments.

Some issues have surrounded Tiong Woon's 64-hectare fabrication yard in Bintan said group chairman and managing director Ang Kah Hong: "It's a brand new venture and understandably we need to incur some start-up costs. In

addition, we have to build up a track record before we can demonstrate that we have the capabilities."

The yard was acquired with a view to support Tiong Woon's current fleet of heavy lift equipment, tugs and barges.

The group's Heavy Lift and Haulage Segment contributed S$99.2 million ($70 million) to overall turnover, turning in a profit before tax of S$30.6 million ($21.6 million), an increase of 133%.

Turnover for its Trading segment saw an increase of 13% to S$19.6 million ($13.8 million), registering a profit before tax of S$4.2 million ($3 million) due to better selling prices of brand new cranes. The group currently has a distributorship agreement with IHI Construction Machinery Limited, a Japanese manufacturer of crawler cranes and parts, with distributorship rights to Singapore, Malaysia, Brunei, Thailand, Philippines, Cambodia, Laos and Myanmar.

Through the acquisition of its subsidiary Soon Douglas (Pte) Ltd, the group is the distributor of Jaso tower cranes in Singapore.

Last month, the Group signed an exclusive agency agreement with Shenyang DKT Cranes Co Ltd, a China-based manufacturer of tower cranes, to sell and distribute its cranes to Singapore, Indonesia, Thailand, Philippine, Myanmar, Vietnam, Brunei, Laos and Cambodia.

Earlier this year, it also signed a distributorship agreement with Fushun Excavator Corporation Ltd, a China-based manufacturer, to sell and distribute the Fuwa brand of crawler cranes in Singapore, Thailand, Philippine, Myanmar, Vietnam, Brunei, Laos and Cambodia.

Ang said: "Although trading currently constitutes only 12% of our overall revenue, it is a logical extension of our business. We have an intimate knowledge of cranes and are in a good position to advise our clients who are looking to purchase these equipment ."

Going forward, in addition to the robust Singapore home market, the group plans to pursue business opportunities in infrastructure, power plants, petrochemicals and oil and gas projects in key markets such as China, Thailand, Malaysia, Indonesia, Vietnam and the Middle East.

Since securing an investment license to run a 100% foreign-owned business

entity in the Kingdom of Saudi Arabia, the group has set up a company in Jubail Industrial City. "This move underlines its commitment to establish a permanent presence in the Middle East," the group added.