| THE strong operating performance of its major business units, coupled with capital gains from share sales, drove Ayala Corp.’s net profit to P5.6 billion from January to March this year, up 80 percent from results in the same period last year.
In a statement to the stock exchange Thursday, Ayala said each of its major business units delivered strong operating performances, although net income growth was partly tempered by extraordinary items incurred during the period.
This resulted in a slight decline in equity earnings to P3.35 billion from P3.69 billion the previous year. Excluding the one-off items, however, key business units registered strong double-digit growths year-on-year and would actually put equity earnings seven percent higher year-on-year.
“Each of our business units continues to be in a strong financial position and is pursuing their respective strategic initiatives to set the platform for sustained growth in the coming years,” said president Fernando Zobel de Ayala.
Ayala, as a group, has allocated some P47 billion for capital expenditures this year on top of the P42-billion capex spent in 2006.
“We are pleased to see the growth momentum sustained in the first quarter. Economic conditions have been favorable for the group to pursue its growth initiatives. Our strong financial position provides us the flexibility to explore new opportunities even as we nurture our new investments in the business process outsourcing space and support our real-estate investments in the international arena,” said chairman Jaime Augusto Zobel de Ayala.
Ayala’s units include property developer Ayala Land Inc., lender Bank of the Philippine Islands, telecom firm Globe Telecom, water distributor Manila Water and electronic services company IMI.
Meanwhile, SM Investments Corp. (SM), the listed holding firm controlled by shopping mall magnate Henry Sy, reported a 14-percent increase in its first quarter net income to P3.3 billion.
Consolidated revenues also expanded by 108.6 percent to P25.9 billion, as all of SM’s core businesses experienced robust sales from an improved economic activity, and the added boost from both the expansion of its department stores and malls last year.
SM is also seeing a bigger income contribution from its real-estate operations as more transactions from residential projects are booked on the progress of its condominium development in Bicutan and Sta. Mesa.
“SM is off to a good start in 2007 with strong earnings growth in the first quarter. The economy continues to be buoyant this year and we are feeling the positive effect in all our businesses,” said president Harley T. Sy.
“We are confident that the trend will be sustainable. As such, we continue to gear up through our expansion of stores, malls, banks and property projects worth P20 billion this year, which speaks of SM’s strong commitment to the Philippines,” said Sy.
| 
No comments:
Post a Comment