SINGAPORE (May 9): Tiong Woon Corporation Group, the heavy lift specialist and service provider, reported 3Q net loss widened to $2.9 million from $0.2 million a year ago.
Revenue fell 36% to $24.3 million. Revenue from the Heavy Lift and Haulage segment was $22.4 million, a decline of 31%, as there were fewer projects executed in Singapore, India and the Middle East compared to a year ago.
Coupled with lower gross profit margin, the segment recorded a loss before tax of $1.1 million during the quarter, compared with a profit before tax (PBT) of $3.8 million a year ago.
The Engineering Services segment saw revenue decrease by 75% to $1.1 million, mainly due to a decrease in work executed for a project, which was near completion, in the Middle East.
Revenue from the Trading segment was 69% lower at $0.1 million, as there was only the sale of spare parts.
Cost of sales declined 29% to $19.3 million, in line with the decline in revenue. Gross margin was lower at 20%, mainly due to lower margins from the Heavy Lift and Haulage and Engineering Services segments.
For the nine months, the group reported earnings of $0.4 million as compared to a loss of $3.9 million a year ago.
Ang Kah Hong, Tiong Woon’s Executive Chairman and Managing Director, said: “The overall business environment has been challenging. Despite the difficult times, the group remains committed to build on our core strengths and capabilities to maintain existing business relationships and seek out new opportunities.”
Shares of Tiong Woon closed 1 cent higher at 28 cents.
