• Ayala Corp H1 profit jumps 32% to P13.8B

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    AYALA Corp. (AC) reported its net income rose 32 percent in the first half of the year to P13.8 billion, on the back of its strong banking, real estate, power and automotive businesses.

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    “Most of our business units recorded an overall strong performance in the first half of the year. Among our new businesses, our power unit is starting to contribute significantly to our bottom line,” Ayala president and chief operating officer Fernando Zobel de Ayala said.

    “We continue to strengthen our portfolio by entering new industries or reinventing our existing businesses. For instance, we are developing an automotive and manufacturing portfolio in order to maximize synergies in the Ayala group and take advantage of the exciting opportunities in this space,” he added.

    Bulk of the profit contributions came from Bank of the Philippine Islands. BPI’s first half net income rose 36 percent from a year ago to P12.7 billion driven by its strong banking business and securities trading gains.

    Property subsidiary Ayala Land Inc. posted first-half net income of P11.3 billion, up 14 percent from the same period last year, on steady performance across its property development and commercial leasing businesses.

    Water utilities arm Manila Water Company Inc. grew its profit by 3 percent to P3.1 billion on the expansion of the Metro Manila East Zone and the continued solid performance of its domestic business.

    Power unit AC Energy tripled its first half net income to P578 million on the back of higher equity earnings contributions from its operating thermal plants —GNPower Mariveles in Bataan and South Luzon Thermal Energy Corp. in Batangas.

    Transport arm AC Infrastructure Holdings Corp. posted first-half net income of P27 million, benefiting from three operating projects under public-private partnership (PPP) scheme.

    These three PPP contracts include the 4-kilometer MCX toll road, the Beep ticketing system, and the extension, operations and maintenance of Light Rail Transit (LRT) Line 1.
    Globe Telecom Inc. also increased its first-half net income by 3 percent from a year ago to P9 billion.

    Electronics and semiconductors unit Integrated Micro-Electronics Inc. (IMI) reported flat profit of $15 million due to weak China operations and foreign exchange losses, which offset growth in the rest of its business segments.

    Name change

    Ayala Automotive Holdings Inc. tripled net income to P402 million in January to June on robust sales of its Honda and Isuzu brands and the higher income share from Isuzu’s distribution business.

    In a separate statement on the same day, AC said it changed the name of its automotive business from Ayala Automotive to AC Industrial Technology Holdings Inc. (AC Industrials).

    AC Industrials will hold all of the Ayala group’s automotive businesses, including the dealership of Honda, Isuzu, and Volkswagen brands, and the group’s automotive distributorship interests.

    These distributorships include: 13-percent stake in Honda Cars Philippines Inc., 15-percent stake in Isuzu Philippines Corp., and 100 percent ownership in Automobile Central Enterprise Inc. (the official Philippine importer and distributor of Volkswagen) and Adventure Cycle Philippines Inc. (ACPI), which is the official motorcycle distributor of KTM in the Philippines.

    AC Industrials will also house the manufacturing operations for KTM AG, the group’s new motorcycle partnership under KTM Asia Motorcycle Manufacturing Inc. (KAMMI).

    Founded in 1834 and incorporated in 1968, AC is the holding company of the Ayala family’s businesses which include water (Manila Water), telecoms (Globe), property (ALI), semiconductors (IMI), banking (BPI), power (AC Energy), infrastructure (AC Infrastructure Holdings Corp.) and BPO and education (LiveIt Investments) among others. It is 50.56-percent owned by Mermac Inc., 10.52-percent by Mitsubishi Corp. and 38.92-percent by the investing public.

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