Tiong Woon upbeat despite profits drop

Gross profit was down 20% for the first quarter of Tiong Woon's 2010 financial year, but revenue held its own with a 1% drop.

The Singapore-based heavy lift and haulage specialist announced a turnover of SG$44.8 million (US$32.3 million) for the quarter ending 30 September 2009.

It posted a net profit after tax and non-controlling interest of SG$6.1 million ($4.4 million), compared to the SG$11.0 million ($7.9 million) it made over the corresponding period in 2008.

The slight fall of 1% in group turnover was mainly due to the lower contributions from its Heavy Lift and Haulage, Fabrication and Engineering and Marine Transportation segments.

Overall, the group's gross profit margin held steady at 35%, slightly above the margins recorded in the two previous quarters.

"Considering the global uncertainty that we faced, this is a creditable set of results. My team has worked hard and we have managed to secure some contracts in markets where the activity level is high, protecting our margins as best as we can," said Ang Kah Hong, group chairman and managing director.

The group's Heavy Lift and Haulage Segment contributed SG$29.2 million ($21 million) to total turnover, down 7% year-on-year mainly due to a fall in contribution from Thailand as several bigger projects were undertaken in the previous corresponding period.

The segment turned in a profit before tax of SG$8.9 million ($6.4 million), in line with lower turnover as well as higher depreciation and maintenance costs incurred for its heavy equipment.

Turnover from the Trading segment rose substantially by 780% to SG$2.8 million ($2 million) due to a sale of a crane in the period, turning in a profit before tax of SG$500,000 ($360,000) million, up 170%.

Ang said the group remains cautiously optimistic on the outlook of the power generation, oil & gas and petrochemical sectors. It continues to be active in its key markets, including China, Thailand, Indonesia, Vietnam, Brunei, India, Malaysia and the Middle East.