MacroAsia sees 10% profit growth in 2006
BUSINESS LINES EXPECTED TO BENEFIT FROM
IMPROVED TOURISM PROMOTION

MACROASIA Corp., a holding company owned by tobacco magnate Lucio Tan, is expecting a 10-percent growth in net profit this year on the back of improved operations of all its businesses.
       And with the current growth trend in the country’s economy together with the aggressive promotion of tourism, a 9-percent increase in revenues is also attainable, the company said.
       Last year, the company posted a net income of P124.40 million and revenues of P809.38 million.
       “The increase in revenues this year would come mainly from the airline catering business, as well as from the ground handling activities on account of the anticipated increases in in-flight meal uplifts from existing and new airline clients, and expected additional ground handling airline client,” it said in a report filed to the Securities and Exchange Commission (SEC).
       It will also continue to push for a more effective cost control to further maximize profits without sacrificing the quality of the products and services the company provides.
       “A three percent reduction in the total cost and expenses is also expected to be achieved in 2006,” it added.
       MacroAsia operates four subsidiaries and two associated companies, which directly render services to airline customers of Ninoy Aquino International Airport (NAIA), Mactan-Cebu International Airport (MCIA) and Davao International Airport.
       It operates in-flight kitchens at NAIA and MCIA through MacroAsia Eurest Catering Services Inc. and Cebu Pacific Catering Services Inc., respectively. Its aircraft ground-handling operations at NAIA are handled by MacroAsia-Menzies Airport Services Corp. (Mac-Menzies).
       MacroAsia is also reviving its nickel mining exploration in Palawan. Earlier, MacroAsia president and chief executive officer Joseph T. Chua said they are now talking with one Chinese, two Japanese and two Canadian companies for a joint venture in the exploration project.
       Joint exploration with foreign investors is now allowed in the Philippines after the Supreme Court in a decision in December 2004 allowed foreign companies to have majority control over local mining projects.
       According to Chua, initial exploration will cost them more than $1 million.
       The company obtained a mineral production sharing agreement (MPSA) from the Mines and Geosciences Bureau covering 1,114 hectares of land in Brooke’s Point, Palawan.
       The MPSA will be in effect for 25 years and is renewable for another 25 years under the same terms and conditions as the existing agreement.
       MacroAsia took over the mining claim covering the property from Cobertson Holdings Corp., formerly Infanta Mineral & Industrial Corp.
       Tan took over Cobertson in 1995 to undertake a backdoor listing of MacroAsia. Infanta Mining was the country’s leading nickel mining operator in the 1970s. Honey Madrilejos-Reyes