Tiong Woon positive despite profit drop

The Heavy Lift and Haulage division of Singapore-based Tiong Woon Corporation Holding (TWC) contributed the largest share of revenue in the 12 months up to 30 June 2010, but turnover was lower than last year.

Group net profit after tax and non-controlling interest was S$23.9 million (US$17.6 million) on turnover of S$148.4 million ($109.6 million). This compares with S$42.3 million ($31.2 million) and S$202.3 million ($149.2 million) in the previous 12 month period.

Heavy Lift and Haulage provided 71% of total revenue for the company. Turnover at the division was lower than the previous year at S$105.4 million ($77.7 million), compared to S$130.6 million ($96.3 million). This resulted from fewer integrated projects being undertaken by the group in Asia Pacific, said the company.

Revenue from the Marine Transportation division improved 28% to S$13.9 million ($10.3 million), thanks to two new charter contracts totalling S$3.0 million ($2.2 million), which required externally chartered vessels to meet customers' specifications.

For the full year, the group recorded a profit before tax of S$28.1 million ($20.7 million) against S$50.8 million ($37.5 million) the year before. As the biggest contributor to revenue, Heavy Lift and Haulage also brought the largest share of profit before tax at S$23.9 million ($17.6 million).

Ang Kah Hong, TWC chairman and managing director, said the global economy is recovering gradually, although there has been some uncertainty over the strength and sustainability of the recovery. "Taking a longer run perspective, our expectations for the business and the group remain optimistic. We will continue to improve efficiency and contain costs. At the same time, we will strengthen and enhance our capabilities through regular upgrading of our fleet and through employee training programmes," said Ang.