Conglomerate Ayala Corp. (AC) posted a 34 percent increase in first-half net income with higher sales generated by its property, telecommunications and water utility subsidiaries.
In a statement, parent firm Ayala said strong growth was driven by the solid performance of its core businesses, particularly Ayala Land Inc. (ALI), Globe Telecom, and Manila Water Company Inc.
AC said quadrupled earnings at Globe offset the weaker contributions from unit Bank of the Philippine Islands (BPI) due to lower trading gains compared to a year ago.
“We are very pleased to see our core businesses continuing their strong earnings momentum. This attests to the strength of the broader business environment in the country,” said AC president and chief operating officer Fernando Zobel de Ayala.
“We remain optimistic that this momentum can continue given the government’s ongoing reforms and the efforts to push for vital infrastructure projects that can unleash development opportunities and address critical bottlenecks,” he added.
Except BPI – whose net profit in the first half slumped 33 percent from a year earlier to P8 billion — AC’s major units posted significant earnings growth.
Among its subsidiaries, ALI’s net income in the first half rose 25 percent to P7.1 billion from P5.6 billion a year earlier, while Globe’s net profit surged 385 percent to P6.8 billion from P1.1 billion. Manila Water’s net income grew 8 percent to P3.2 billion from P2.9 billion, and electronics and semiconductor manufacturer Integrated Microelectronics Inc.’s (IMI) net income rose four times to $11.3 million from $2.1 million last year.
Ayala Corp. set aside P24 billion capital expenditure for 2014 for its investments in the power and transport sector, several of which are public-private partnership (PPP) projects. The company is investing a total of $1 billion capex from 2012 to 2016 for energy and infrastructure projects.
AC recently won the LRT 1 Cavite expansion project together with the Metro Pacific group, and was the highest complying bidder together with the Aboitiz group for the Cavite-Laguna Expressway project.
Founded in 1834 and incorporated in 1968, Ayala Corp. is the holding company of the Ayala Group of Companies which include Manila Water, Globe, ALI, IMI, BPI, and LiveIt Investments among others. It is 50.56-percent owned by Mermac Inc., 10.52 percent by Mitsubishi Corporation and 38.92 percent by the investing public.