SINGAPORE - Crane lessor and trader Tat Hong dug deep to contain costs but that was not enough to offset the drop in demand in key markets.

Its first quarter net profit for the three months ended June 30 fell 28 per cent to $6 million, as revenue dropped 6 per cent to $164.2 million.

A decline in sales of excavators in Singapore, Indonesia and Vietnam due to weaker demand dented its earnings.

Revenue generated from its crane rental division also decreased 3.6 per cent to $66.3 million due to a slowdown in the construction sector here as well as reduced rental to overseas markets.

Tat Hong said its cost containment measures shaved its total operating expenses by 7.6 per cent to $48.4 million.

The cost savings were, however, partially eroded by higher net foreign exchange losses of S$1.3 million.

An increase in provision for doubtful debts amounting to $500,000 and an increase in rental commission and sales expenses of $300,000 further dragged down earnings.

Earnings per share for the quarter was 0.93 cents, down from 1.28 cents previously.

Net asset value per share was $1.05 at the end of June, unchanged from at the end of March.

Tat Hong shares closed up a cent to 84.5 cents. It reported its earnings after markets closed.