Tiong Woon holds out for hopeful future

Sinapore-based Tiong Woon posted a 35% increase in net profit for the third quarter of its 2009/2010 financial year but remains cautious about the future.

The lift and haulage specialist said the sale of property for S$10.6 million (US$7.6 million) made up the bulk of profit before tax of S$11.6 million ($8.4 million). Total net profit for the quarter, ending 31 March 2010, was S$9.6 million ($6.9 million).

Group turnover was S$28.4 million, compared to S$52.8 million ($38 million) in the previous corresponding period. Earnings per share saw a jump from 2.11 cents to 2.58 cents.

Commenting on the results, Ang Kah Hong, group chairman and managing director was satisfied with the performance considering the third quarter is seasonally slower compared to the rest of the year. "It has been a challenging quarter for us with lots of ups and downs. To some extent, our results reflect the lagged effect of a down cycle in the market."

Turnover from the Heavy Lift and Haulage segment was S$22.4 million ($16.1 million) compared to S$29.4 million (21.2 million) previously. The difference was largely due to lower contributions from Thailand, Indonesia, China and Singapore and a drop in the utilisation rate for its lower tonnage capacity cranes, said Ang. Profit before tax was S$2.8 million ($2 million) compared to S$10.7 million ($7.7 million).

Higher turnover from Marine Transportation segment, which grew 121% to S$4.3million ($3 million), was due to two new charter contracts of significant value. This increase in turnover has reduced the loss from S$1.1 to 0.9 million ($793,000 to 648,000).

The recovery of the global economy remains uncertain, commented Ang. "Nevertheless, the rapid rise in oil prices over the past few months are positive signs. Looking beyond the short range horizon, the group retains a cautious optimism about its longer term prospects, considering the fact that Tiong Woon Corporation Holding (TWC) is one of a few specialized contractors in the region that supports the oil & gas, power generation and petrochemicals industries."