SINGAPORE (Feb 8): Tiong Woon Corporation announced 2Q18 earnings declined by 71% to $0.52 million compared to $1.82 million in 2Q17.
Revenue for the quarter came in at $28.2 million, 10% lower than $31.3 million a year ago, mainly due to the decrease in contributions from the engineering services segment, partially offset by the group’s increase in revenue for its trading segment.
The group’s engineering services segment revenue decreased by 80% to $0.7 million from $3.4 million in 2Q17, mainly due to the substantial completion of a project in the Middle East. There were also contributions from certain projects in Singapore and Vietnam in 2Q17 but none in 2Q18.
The group’s heavy lift and haulage, as well as marine transportation segments also recorded decline in revenue.
Similarly, cost of sales dropped 10% to $20.3 million from $22.5 million last year.
Hence, gross profit stood at $7.87 million, 10% lower than $8.78 million in 2Q17.
The group’s other gains dropped by 96% to $81,000 compared to $1.81 million last year, mainly attributable to gain on disposal of plant and equipment of $0.7 million which was offset by loss on disposal of a subsidiary of $0.5 million and operational exchange loss of $0.2 million.
The group remains committed to effectively manage operating costs and business risks to stay competitive. It will continue to explore strategic collaborations and leverage on its capabilities and track record as a one-stop integrated heavy lift specialist and service provider to target complex and high value projects to grow the business.
Shares in Tiong Woon Corp closed at 30 cents on Thursday.
