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By Likha C. Cuevas-Miel, Reporter
AYALA Corp. announced on Thursday that its
profit last year jumped to a record on higher capital gains from
share sales, reduced expenses and stable equity earnings from its
subsidiaries.
Citing unaudited figures, the country’s
largest conglomerate said earnings jumped by 33 percent to a record
P16.2 billion, while consolidated revenues inched up by 5.96 percent
to P56.58 billion.
“We are pleased with the group’s performance
in 2007 as each of our major business units sustained a healthy
growth trajectory. Each is well positioned to pursue value-creating
strategies that will help accelerate Ayala’s growth moving
forward,” Fernando Zobel de Ayala, the holding firm’s president
and chief operating officer, said in a statement.
The firm’ core businesses posted double-digit
growth last year but results were mixed for companies under AC
Capital. Consolidated equity earnings of all units slipped by 2.5
percent to P11.8 billion year on year. Ayala Corp.’s capital gains
from “value realization initiatives” surged by 55 percent to
P7.3 but even without these gains, profits would still be up by
about 19 percent.
Financing expense last year declined by 26
percent to P3 billion as the company prepaid debts amounting to P14
billion while at the same time reducing average funding costs. Net
debt by year-end went down to P13.5 billion with net debt-to-equity
ratio at 0.15 to 1.
The conglomerate’s real estate arm, Ayala Land
Inc., earlier reported a 13-percent growth in earnings to P4.4
billion. Its banking business, Bank of the Philippine Islands,
posted an 11-percent increase to P10 billion in net income.
The group’s telecom concern, Globe Telecom
Inc., also enjoyed a 27-percent growth in its net income to P13.7
billion.
Equity earnings contributed by companies under
AC Capital however fell by 42 percent to P1.4 billion year on year.
Despite the expiration of its income tax
holiday, Manila Water Co. Inc. posted slightly higher profits at
P2.4 billion year on year, while Integrated Microelectronics Inc. (IMI)
saw its net income rise 3 percent to $36 million on an 8-percent
rise in revenues to $422 million.
IMI said the stronger peso hit direct labor and
overhead expenses and other spending related to technology
integration, pushing operating income lower.
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