• Cirtek sets lower 2014 growth target

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    Laguna-based Cirtek Holdings Philippines Corp. remains conservative in setting its annual growth target, eyeing only up to 10-percent growth this year from its 10-percent to 12-percent overall performance growth target in 2013.

    “Cirtek’s core business is forecast to grow between 8 [percent][and]10 percent in 2014,” the company said in a statement. This is lower than the up to 12-percent growth target the firm had set for last year. For 2013, the company forecasted net sales to grow by 25 percent.

    Also, the company expects 10-percent to 12-percent growth from its current business for last year, while accretive growth from joint venture and acquisitions, the company is eyeing 13-percent to 15-percent increase.

    According to Cirtek, the revenue from its accretive business, or new products, new projects and potential acquisitions, will contribute an additional 5 percent to 8 percent of additional revenue this year.

    However, the company has set its eyes on new opportunities that can boost its performance, such as the joint venture it has with a major Japanese company for the production of LED back-lighting to be used in consumer electronic devices.

    For the 12 months ended December 31, 2013, Cirtek recorded a net income after tax amounting to $4.7 million, up by 7 percent from the $4.4 million in 2012, while its consolidated revenue in 2013 grew to $44 million, an increase of 8 percent from the $40.6 million it recorded in 2012.

    Gross margin of the listed company also remained steady at 13 percent in 2013, as it carried out comprehensive cost reduction measures to cope with the rise in raw material prices, power rates, and wages.

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