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By Likha C. Cuevas-Miel, Reporter
AYALA Corp. announced on Tuesday that its
first-quarter net income fell by more than half from last year due
to the absence of capital gains as well as to lower earnings from
its banking and business process outsourcing (BPO) businesses
ventures.
In a statement, the conglomerate said its profit
for the three-month period dropped 53 percent to P2.6 billion from a
year ago since earnings last year included the P3.3-billion gains
from the sale of shares. Without these gains, the group’s net
income was 11 percent up year on year.
“The past couple of years presented unique
opportunities to realize values from investments we have made in
prior years. Conditions for value realization are limited this year
given a more challenging operating environment. We believe, however,
that current conditions may present opportunities for value creation
and we continue to be on the lookout for value propositions that may
arise from the fallout in global and domestic markets,” Fernando
Zobel de Ayala, Ayala Corp. president and chief operating officer,
said.
The conglomerate said lower earnings from its
banking and BPO investments offset the strong performance of its
property, telecom, water, electronics and automotive units. This
resulted in a 7-percent decline in equity earnings, even as the
group cut cost and expenses, including a 31 percent drop in interest
and financing charges.
In the first quarter, Ayala Land Inc.’s
profits rose 42 percent to P1.8 billion as consolidated revenues
grew by 28 percent. Bank of the Philippine Islands’ earnings
however fell by 52 percent to P1.5 billion as revenues dropped 26
percent.
Globe Telecom Inc. and Integrated
Microelectronics Inc. saw their net incomes rise by 32 percent and
48 percent to P3.4 billion and $9.3 million, respectively.
Manila Water Co. Inc.’s net income also
climbed by 22 percent to P625 million as revenues increased by 16
percent to P2 billion, whereas the conglomerate’s automotive
business posted a 5-percent increase in sales and a 4-percent growth
in net income from last year.
BPO unit Integreon’s revenues were up 49
percent year on year while Affinity Express won new big contracts.
Listed call-center unit eTelecare projected that its first quarter
results may have climbed 15 percent to $70 to $72 million.
“We believe the underlying fundamentals of
each of our businesses remain solid. There are near-term challenges
exacerbated by the US credit crisis and rising food and commodity
prices. We expect a more tempered growth momentum across various
industries which may impact some of our key businesses. However, we
believe the strong market and financial positions achieved by each
of our operating units will provide resiliency in the face of these
difficult conditions,” Jaime Augusto Zobel de Ayala, the
conglomerate’s chairman and chief executive, said.
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