Singapore-based Sin Heng Heavy Machinery Ltd has seen a continued decline in its results during the six months to 31 December, 2009, but is now confident of, ‘a steady recovery’.

During this six month period, the first half of its 2010 financial year (1H FY2010), revenue was down 11.2% from SGD80.2m (USD57.4m) to SGD71.2m (USD50.1m) against the six months to 31 December, 2008 (1H FY2009); gross profit was down 35.9% from SGD22.2m to SGD14.2m; profit before tax was down 40.9% from SGD19.3m to SGD11.4m; and net profit was down 39% from SGD16.3m to SGD9.9m. Comprehensive income totalled SGD10.4m in 1H FY2010, compared to SGD15.8m in 1H FY2009.

Its trading business was the hardest hit segment of Sin Heng, with revenue down 14.3% from SGD63.6m to SGD54.6m as a result of lower sales of cranes and aerial lifts. Equipment rental remained steady however, Sin Heng said, with revenue at SGD16.7m compared to SGD16.6m in 1H FY2009. It said barring unforeseen circumstances, the equipment rental business will continue to be stable.

“Due to the global economic slowdown and the credit crunch, trading of equipment has experienced a slowdown in the second half of FY2009, but we are beginning to see a steady recovery in demand and buying interest starting from the first quarter of FY2010 with an upward trend towards the end of the first half of FY2010,” said Don Tan, managing director of Sin Heng.

“In the first half of FY2010, we sold 59 cranes as compared to 29 cranes in the second half of FY2009.

“Going forward, we intend to continue our strategy of enhancing our comprehensive fleet of cranes and aerial lifts to secure more projects in the infrastructure and geotechnic sectors and maximise the returns on our assets and deliver greater returns to our shareholders,” added Tan.

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