Blame it on forex losses, climbing costs.
Tat Hong Holdings booked a net loss of $6.7m in Q3 as gross profit margins, forex losses and increased costs and provisions weighed down revenue.
According to a report, Tat Hong’s finances have taken a beating. All of Tat Hong’s divisions reported lower turnover, forex losses reached $2.9m, and raised costs and provisions in relation to the company’s exit of the Indonesian excavator distribution business.
On the flip side, few bright spots came from the company’s crane rental business in Indonesia, as well as Tower Crane Rental segment’s QoQ performance.
Tat Hong is anticipating earnings for the full financial year to be depressed, which largely reflects the outlook of industry peers. Meanwhile, OCBC notes that if approved, the proposed spin-off of the Tower Crane Rental segment may offer shareholders some value, though the process is likely to take longer than expected.
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