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Aboitiz
Equity Ventures (AEV) posted a P1.18-billion profit in
the first three months of the year, or 9-percent higher
than a year ago.
Its
power group boosted earnings with P761 million in
contribution, followed by the banking group’s P232
million and food group’s P156 million.
The
transport group, however, posted a P22-million loss in
the quarter, higher than the P20-million loss in 2007.
Jon
Ramon Aboitiz, AEV chief executive, said the losses were
expected since the first quarter is usually a slow
season for both passenger and freight segments.
The
company reported a record 54-percent increase in profits
in 2007, backed mostly by solid performances of its
banking and power units.
The
company reported during its annual stockholders’ meeting
that it posted consolidated revenues of P31 billion and
profits of P5.8 billion in 2007, far better than the
P27-billion revenue and P3.8-billion profit performance
for 2006.
“We
continue to enhance and maximize the value of all our
existing businesses, entering into strategic business
partnerships and acquiring major investments,” he said.
Aboitiz
Power, which went public in 2007, continued to provide
the bulk of AEV’s profits, contributing P3.3 billion or
61 percent of the holding firm’s total earnings. Aboitiz
Power is 73-percent owned by AEV.
Union
Bank and City Savings Bank also provided solid revenues,
growing 11 percent in 2007 after posting a P1.24-billion
profit for 24 percent of AEV’s total earnings.
“[Union
Bank’s] net revenues surged by 17 percent to P8.7
billion driven primarily by the 16-percent growth in net
interest income, as average earning assets increased by
31 percent with the increase in total loans to P40. 3
billion and the reduction of nonperforming loans to P4.2
billion,” AEV chief operating officer Erramon Aboitiz
said.
“Net
interest income jumped 18 percent with the P16-percent
growth in service charges, fees commissions and higher
gains on the sale of foreclosed assets and selected
nonperforming loans in March 2007.”
City
Savings Bank also remained strong, contributing P63
million to AEV while expanding its resources by 65
percent to P4 billion.
Despite
surging fuel costs and severe competition from airlines,
Aboitiz Transport System Corp. (ATS) ended 2007 with a
net income of P318 million, a 124-percent increase over
its 2006 contribution.
“Improvement of ATS performance was primarily due to
gains from the sale of assets that resulted in lower
financing costs and the reconfiguration to higher
freight capacity that led to higher asset utlilization
and earnings,” he added.
AEV’s
food group, led by Pilmico Foods Corp., also grew
significantly.
Pilmico
added P530 million in the total kitty as the company
continued to support its market penetration efforts in
Luzon while maintaining its already formidable hold of the market
in the Visayas-Mindanao area.
With
these prospects, Pilmico has begun construction of a
feedmill inside its Iligan City Milling Complex as well
as breeder farms in Tarlac. |
