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LOWER
operating and financing costs resulted in higher net
income for Ayala Corp. during the first nine months of
the year to P13.6 billion, up 41.67 percent from P9.6
billion a year earlier.
Profit
from January to September, the company said exceeded its
2006 full year net income of P12.2 billion.
However,
net income for the third quarter alone fell to P2.1
billion from P2.3 billion the previous year.
“The
strong performance in the first nine months of the year
is attributed to the company’s efforts to continually
lower operating and financing costs, extract values from
the existing portfolio at opportune times, and
consistently manage our businesses in a way that
maximizes the opportunities presented by an improving
economic environment,” said president and chief
operating officer Fernando Zobel de Ayala in a
statement.
The
company reported a 20-percent improvement in costs and
expenses as a result of a 22-percent decline in its
financing expenses and a 10-percent reduction in general
and administrative expenses.
“We
consistently reduced our net debt, which stood at P13
billion as of the end of September from P23 billion at
the beginning of the year. Net debt to equity ratio
ended at 0.15 to 1 from 0.29 to 1,” said Zobel de Ayala.
Net
income was further enhanced by gains from P7 billion in
share sales in the first half of the year, while the
strong earnings performance of business units kept
equity earnings stable at P9 billion. Most operating
units registered good earnings growth year-on-year,
experiencing bonanza from a vibrant consumer-driven
market.
Property
arm Ayala Land Inc. reported a net-income growth of 15
percent in the first nine months of the year to P3.1
billion as underlying demand across all segments
remained upbeat. Residential unit bookings in the first
three quarters of the year for its high-end and middle
market projects rose 18 percent and 42 percent,
respectively while bookings in affordable housing
segment rose 134 percent.
Revenues
from shopping center operations grew 11-percent due to
higher occupancy and rental rates, while revenues from
corporate business segment increased 13 percent as a
result of higher lot sales and rental rates.
Bank of
the Philippine Islands (BPI) registered a net income of
P7.6 billion, up 11 percent in the same comparable
period. Revenues grew 11 percent with noninterest income
accounting for a bigger share and posting a much
stronger growth of 24 percent year-on-year. Net interest
income posted a 5 percent growth, benefiting from a
9-percent expansion in the average asset base, which
mitigated the impact of lower spreads. As domestic
interest rates remain at historic lows, the bank’s loan
portfolio continued to expand with net loans up 10
percent and exceeding industry’s 7.5 percent growth
during the period.
Carrier
Globe Telecom also reported an improved income of P9.7
billion. Core earnings, which exclude foreign exchange
gains and one-time bond redemption charges, reflected a
much stronger growth of 20 percent. Service revenues
grew by 11 percent to P47 billion for the nine months
ended underpinned by the 12 percent and 6 percent growth
in wireless and wireline revenues, respectively.
However,
the performance of some companies under the AC Capital
portfolio was affected by the continued strengthening of
the peso.
Integrated Microelectronics Inc., in particular,
registered a 27 percent decline in net income to $21
million during the period. Despite sales growing four
percent to $306 million, the impact of a strong peso and
higher administrative expenses related to the continuing
integration of its international operations weighed in
on earnings during the period.
Manila
Water Co., on the other hand, continued to post strong
operating performance with pre-tax earnings up 40
percent. Thus, despite the expiration of its income tax
holiday this year, Manila Water registered only a three
percent decline in net income. |
