Singapore-based crane and construction equipment rental company Tat Hong Holdings suffered a poor end to the 2014-15 financial year with a loss of S$17 million (€11.6 million) for the three months ending 31 March.
The company, which operates in the Far East and Australia, advised in mid-April that it would not make a profit in the final quarter, and its total profit, of S$6.8 million (€4.6 million) was down by 80% year on year.
Total revenue fell by 11% from $$684 million (€465 million) to S$608 million (€413 million) after falling by 12% in the fourth quarter.
Rental revenues, excluding the company’s income from distribution, fell by 16% to S$80 million (€54 million) for the quarter and almost 7% to S$390 million (€265 million) for the year.
Only the tower crane rental sector, down 3% for January to March but 8% up overall, emerged unscathed.
Tat Hong’s income statement said: “The decrease in revenue from the Crane Rental division in were due to the disposal of Hup Hin Transport in July 2014, the completion of projects in Australia and Singapore, a slowdown in the construction industry in Singapore, and reduced rental activity in overseas markets such as Papua New Guinea.
“The decrease was partially mitigated by higher revenue from Malaysia with new projects and crane rental revenue from Hong Kong and Thailand remained comparable to previous corresponding periods.
“While revenue from the tower crane rental division in was slightly lower than previously, there was an overall increase in the financial year due to a larger fleet size and continued participation in infrastructure, large commercial and power plant projects in the People’s Republic of China.
“Lower public spending, lack of infrastructure projects and general weak market conditions in Australia, coupled with market competition, resulted in lower revenue from the general equipment rental division in the fourth quarter and the financial year.”
Looking ahead, the company said that the tower crane rental business should regain its growth momentum in the 2015-16 financial year, but general rental would be affected by the slow recovery in the Australian construction industry.