SM Investments Corp. (SMIC), the listed holding company for the Sy family’s real estate, banking and retail businesses, said the next 12 months will be “hard” as consumer sentiments will be hurt by negative news abroad but near-term earnings are still expected to grow over last year.

SMIC chief finance officer Jose Sio, responding to a query on the outlook for the company over the next year, said “the next 12 months will be hard. OFWs [overseas Filipino workers] will be affected. Europe and the US [economies] will be down. China is the saving grace.” He made his comment during yesterday’s forum organized by The Economic Journalists Association of the Philippines in cooperation with the Financial Executives of the Philippines and ING Bank.

“We should protect our balance sheet, keep a low gearing ratio and have enough cash and credit lines so when an opportunity comes up, we can capture it,” he added.

In a separate interview with reporters, Sio said SMIC expects third-quarter earnings to be “better” compared with the same period in 2010.

He reiterated that the company plans to invest in the government’s planned infrastructure projects, but only as a portfolio investor.

The conglomerate owns Prime Holdings Inc., the Philippines’ biggest mall developer, and Banco de Oro Unibank Inc., the country’s biggest bank in terms of assets. It is also in retail merchandising, residential development and hotels.

Shares of the company declined 0.45 percent to P549.50 each on Wednesday.