Manitowoc Cranes awarded the distributorship of its all-terrain Grove cranes in Indonesia to Singapore-listed Sin Heng Heavy Machinery Limited and its subsidiary PT SH Machinery Indonesia. Sin Heng already deploys eight Grove cranes as part of its own rental fleet in the rapidly developing Southeast Asian nation.
Raman Joshi, VP and general manager for Manitowoc in Asia Pacific, said, “Manitowoc sees tremendous synergy in this working partnership. Sin Heng Heavy Machinery is at a stage where it is primed for growth and we are confident in the company’s ability to deliver.”
Sin Heng recently released its 2015 financial year figures for the year ending 30 June 2015 with revenue of S$177.8 million - a 16.6 percent drop from the year before. The company states that this decrease was due to lower trading revenue as a result of the weaker demand for higher capacity cranes. Equipment rental revenue, on the other hand, remained fairly stable amidst the competitive rental environment as compared to the previous year.
Despite the drop in revenue, Sin Heng only recorded a marginal 1.7 % decline in gross profit as compared to the year before, ending with S$31.7 million. The company credits this to the improvement in gross profit from the trading business to S$16.2 million, which mitigated the 10.2 % decline in the gross profit from the equipment rental business to S$15.5 million.
Sin Heng achieved a net profit after tax of S$12.0 million.
In a joint message from Mr Tan Cheng Soon Don, managing director of Sin Heng and Mr Tan Ah Lye, non-executive chairman of Sin Heng, they discussed their plans for the company moving forward, “As the global economy continues to be shrouded in uncertainties, we expect the path ahead to remain challenging for some time. Notwithstanding that, we are staying vigilant and cautiously optimistic as we expect the overall sentiment in the Asian market to gradually improve, supported by sustained economic growth in the developing and emerging markets.”