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DMCI
Holdings Inc. reported a 150-percent jump in
consolidated net profit to P2.84 billion in 2007 from
P1.14 billion a year earlier.
In a
report to the stock exchange, the Consunji-led company,
which has interest in property development,
construction, coal mining and water distribution, said
the earnings included extraordinary items.
“As last
year’s earnings included a P386-million gain on sale of
shares of the coal business, the resulting ordinary net
income from recurring operations was still significantly
higher from P1 billion in 2006 to P1.918 billion in
2007. First time results from the water investment,
progress in the construction business, and the sustained
phenomenal growth in the real-estate segment were the
drivers for the upsurge in the figures,” the company
said.
Its
consolidated revenues in 2007 rose 43 percent to P12.44
billion from P8.70 billion in 2006.
The
group’s real-estate business, headed by its wholly-owned
unit DMCI Project Developers Inc. (PDI) and operated
under the brand DMCI Homes, continued to recognize
exceptional growth in its operations for the year.
Last
year’s real-estate sales rose 29 percent to P2.455
billion, and income grew 134 percent to P671 million
during the same comparable period. Increased sales and
an effective higher selling price provided much of the
rise in both top line and bottom line figures despite
the drop in line revenues from the old projects and the
intensified-operating expenses.
Sales
from new projects, namely, Alta Vista Boracay, Manors at
Celebrity Place, Raya Gardens and Rosewood Pointe,
accounted for 60 percent or P1.468 billion of total
real-estate revenues.
“Though
the residential sector continues to experience an
up-trend in business, the company is aware of the global
adversities prevalent in the international real-estate
sector with the
US
subprime issue causing a seeming recession in the
US
markets. These adversities may have a harmful effect on
the company’s real-estate operations through direct US
sales,” DMCI explained.
It
noted, however, that its direct US sales only account
for approximately 2 percent of total sales and it has
resolved to strengthen domestic and international sales
in the European and Middle Eastern Overseas Filipino
Workers markets.
The
company has also decided to postpone its short to mid
term plans to list its real-estate business as it moves
to maintain its focus on residential development
specifically catered to the middle income-housing
market.
Meanwhile, D.M.Consunji Inc. reported improved
operations last year compared to 2006. Construction
revenues and income for the year reached P2.955 billion
and P324 million, up by 69 percent and 136 percent,
respectively. This was caused by increased construction
activity from outside contracts and jobs provided by the
water business and inclusion of income from assets held
for sale.
DMCI
registered a net equity in earnings from its investments
in the water business amounting to P1.81 billion which
included a P2.12-billion share in the negative goodwill
from the acquisition of Maynilad and a P799-million net
share in losses due to the financing, acquisition and
other costs reported at DMCI-MPIC Water Co. Inc. (DMWC).
DMWC is
the consortium company with partner Metro Pacific
Investments Corp., which won the right to acquire 84
percent share in Maynilad Water Services Inc. |
