| Friday, April 28, 2006 |
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| JG Summit posts lower 2005 earnings |
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In its audited financial statements, JG Summit said net income went down 30.9 percent to P4.25 billion in 2005 compared with the previous year’s P6.16 billion, which included a P4.7-billion extraordinary gain on early debt payments. The company also attributed the lower profit to the new accounting standards adopted for 2005, which require annual impairment allocation for assets. JG Summit said consolidated revenues rose 6.3 percent to P70.68 billion. “Our [revenue] growth was driven by the continued improvement in sales and revenues of our core businesses, foods and real estate development, plus the steady rise in the revenues of our telecommunications, air transportation and textile businesses,” the company said. The company added that interest income from its investment portfolio further boosted its revenues by 11.9 percent. Of JG Summit’s units, only Robinsons Land Corp. and Universal Robina Corp. posted double-digit growth in earnings, with four other units still in the red. The company said its telecom unit’s consolidated loss before income tax went down 43.4 percent to P1.049 billion. Cebu Pacific’s net income declined to P78.2 million this year from P126.5 million in 2004, largely due to higher cost of services and operating expenses, mainly fuel-related. The air carrier’s revenues grew 5.5 percent to P7.81 billion during the year as domestic operations improved. JG Summit’s petrochemicals and textile businesses also incurred losses. The conglomerate’s operating expenses rose 3.9 percent to P17.97 billion, pertaining mostly to expenses incurred by its telecom, air transportation and foods businesses. Cost of sales and services went up 6.6 percent due to the rising cost of services in air transportation and mobile phone, and the decline in gross profits of the petrochemical and textile businesses. Over the next few years, JG Summit expects to invest most of its funds on fast-growing industries with large markets, specifically wireless communications and data, commercial property development and branded consumer foods. |
http://www.manilatimes.net/national/2006/apr/28/yehey/business/20060428bus8.html
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