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SINGAPORE-LISTED construction equipment firm Tat Hong fell as much as 10 per cent yesterday after it warned investors that its third quarter profit would take a hit from foreign exchange losses and lower equipment sales.
The stock managed to close the day at 65.5 cents, still down 3.5 cents, or 5.1 per cent.
The firm, which imports most of its equipment from Japan, said that it would suffer losses because the Singapore dollar had weakened and the yen strengthened.
It also said both equipment sales and its order book had shrunk in its fiscal third quarter that ended on Dec 31 as a result of cautious customer spending and credit tightening by banks.
OCBC Securities downgraded Tat Hong Holdings to 'hold' from 'buy' on Friday and lowered its profit forecasts by 6 per cent for the full year ending in March.
A Singapore dealer said Tat Hong's cranes might not be realising their full profit potential because they are sitting idle at construction sites where projects have been delayed. He added that business might improve only when construction projects pick up. - Reuters
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