SINGAPORE (Feb 9): Tiong Woon Corporation Holding swung back into the black in 2Q17 after reporting earnings of $1.8 million for the quarter, a turnaround from the net loss of $67,000 in 2Q16.
In the 2Q17 ended December, revenue fell 12% to $31.3 million, due to the lower sales contribution from its heavy lift and haulage business segment of $6.1 million as fewer projects were executed in Singapore, India and the Middle East.
Its marine transportation segment reported a sales increase of 11% on the back of more chartering jobs, while sales from engineering services rose 64% to $3.4 million as its project in the Middle East progressed at a faster pace, and on the back of completed projects in Singapore an Vietnam.
The trading segment recorded higher sales, thanks to a higher capacity crane that was sold during the quarter.
On the other hand, cost of sales fell 17% to $22.5 million, as a result of the group’s active cost management.
The group also recorded other net gains of $2.1 million, compared to the $0.2 million in the previous corresponding quarter, from an increase in operational exchange gain of $1.5 million and a gain on disposal of plant and equipment of $0.1 million.
Administrative expenses fell 28% to $0.3 million, and other operating expenses fell 10% to $6.4 million.
Tiong Woon says that its operating environment continues to remain challenging and competitive due to falling demand in its key markets, but it added that the ongoing public sector infrastructure development in Singapore will provide support for its business.
Furthermore, the group intends to continue its focus on managing its operating costs and explore strategic collaborations to grow its business.
The group did not declare any dividends for the current financial period.
Shares in Tiong Woon closed at 25.5 cents on Thursday.
