Philippines News Archives

Thursday, February 24, 2000

AC ( 02/24/2000 : STAR )
Ayala Corp. reported yesterday its unaudited results for 1999. The company's yearend consolidated net income of P5.1 billion was lower by 22 percent from the year-ago level of P6.57 billion, mainly due to flat or lower results of Ayala Land Inc. and Bank of the Philippine Islands (BPI). Ayala Corp. reported a 16-percent growth in its consolidated resources to P138 billion. Cash reserves rose by 25 percent to P16 billion, maintaining the company's ability to cover regular working capital requirements and address possible strategic opportunities. Current and debt-equity ratios are at comfortable levels of 2.1 and 1.06, respectively. The group's real estate subsidiary Ayala Land ended the year on solid ground with revenues of P8.9 billion despite the continued softness of the overall property market. ALI generated a consolidated net income of P2.6 billion with lease operations accounting for 31 percent of consolidated revenues. BPI registered a consolidated net income of P4.03 billion. This was 12 percent lower than the previous year's level as loan demand remained soft and spreads narrowed with declining interest rates. Nevertheless, BPI remained one of the country's best-managed banks with its low NPL ratio of 6.8 percent. Its return on equity of 13.7 percent and return on assets of 1.8 percent remains the highest among universal banks. Globe Telecom ended 1999 on a strong note with revenues of P9.4 billion and a net income of P939.5 million. Total assets stood at P36.5 billion while stockholders' equity was at P13.5 billion. Globe Telecom is now the country's second-largest cellular company capturing 30 percent of the market, rising from eight percent two years ago and the undisputed digital cellular leader with a 75-percent market share. Pure Foods Corp. posted sales revenues of P10.8 billion and net profits of P727.6 million. As all operating units registered growth in sales and profits, recurring operations grew by 162 percent to P615.9 million from the previous year's level. The processed meats business, which is now under The Pure Foods Hormel Corp., remained the largest contributor with tonnage sales growing by 32 percent driven by strong sales of hotdogs. Cognizant of the changing competitive landscape, Ayala Corp. continues to seek out emerging opportunities for long-term growth. Recently, it launched the Ayala eCenter website to enable consumers throughout the globe to purchase the group's products and services.
- posted by StockMarket @ 11:08 PM

AC ( 02/24/2000 : PSE )
This has reference to the PSE letter of even date regarding the article which appeared in the Business World reporting on supposed talks between Ayala Corporation and Destiny Cable for internet partnership. Please be advised that as part of its business development planning, Ayala Corporation regularly holds dialogues with various parties in the various fields the company is engaged in. Nonetheless the company wish to state that Ayala Corporation has not come up with any definitive agreement with Destiny Cable on any form of partnership, strategic alliance or working relationship.
- posted by StockMarket @ 11:08 PM

AC ( 02/24/2000 : PSE )
The company is pleased to report Ayala Corporation's unaudited results for 1999. The Company's yearend consolidated net income of P5.1B, which did not have an extraordinary gain component, translated to a growth in recurring income of 6% from the 1998 comparable level of P4.8 B. Consolidated net income, however, was lower by 22% from the year-ago level of P6.57 B, mainly due to flat or lower results of Ayala Land, Inc. (ALI) and Bank of the Philippine Islands (BPI). Ayala Corp. also reported a 16% growth in its consolidated resources to P138 B. Cash reserves rose by 25% to P16 B, maintaining the Company's ability to cover regular working capital requirements and address possible strategic opportunities. Current and debt-equity ratios are at comfortable levels of 2.1 and 1.06, respectively. The group's real estate subsidiary, Ayala Land, Inc., ended the year on solid ground with revenues of P8.9 B despite the continued softness of the overall property market. ALI generated a consolidated net income of P2.6 B with lease operations accounting for 31% of consolidated revenues. A strong balance sheet backed by P56.0 B total resources and a low debt level positions the company for long-term growth. Steady cash flows and efficient cash management enabled the Company to make strategic capital investments which totaled P4.2B for the year without incurring additional borrowings. The BPI registered a consolidated net income of P4.03 B. this was lower than the previous years level as loan demand remained soft and spreads narrowed with declining interest rates. Nevertheless, BPI remained one of the country's best-managed banks with its low NPL ratio of 6.8%. Its return on equity of 13.7% and return on assets of 1.8% remains the highest among universal banks. Globe Telecom ended 1999 on a strong note with revenues of P9.4B and a net income of P939.5 M. Total assets stood at P36.5 B while stockholders' equity was at P13.5B. Globe Telecom is now the country's second-largest cellular company capturing 30% of the market, rising from 8% two years ago and the undisputed digital cellular leader with a 75% market share. The Company's combined mobile and fixed-line subscriber base exceeded one million in 1999. It continues to explore the possibility of combining its operations with other cellular and fixed-line operators.
- posted by StockMarket @ 11:07 PM

AC ( 02/24/2000 : AFX )
The Ayala Group has started discussions with Destiny Cable Inc for a possible tie-up in the Internet business, the BusinessWorld newspa- per quoted an official as saying. "We have an agreement with Destiny that we will look into a possible joint venture. It is very early at this stage," the official said. Ayala Corp recently established a new unit called Ayala Co Inc for its information technology convergence business venture.
- posted by StockMarket @ 11:07 PM

Wednesday, February 23, 2000

AC ( 02/23/2000 : PSE )
This is to inform the PSE that Ayala Corp., Singapore Telecom International (STI), a wholly owned subsidiary of Singapore Telecom, and Deutsche Telekom have signed a definitive agreement on the combination between Globe Telecom, Inc. (Globe) and Isla Communications, Inc. (Islacom). The agreement follows the signing last November of a preliminary agreement outlining the broad terms. Subject to the appropriate shareholder and regulatory approvals, Globe and Islacom will combine in all-stock transaction. The parties hope to complete the transactions to implement these agreements before the end of the year.
- posted by StockMarket @ 11:06 PM

AC ( 02/23/2000 : AFX )
Ayala Corp's net profit fell to 5.1 B pesos in 1999 from 6.6 B a year earlier due to flat or lower results of its units Ayala Land Inc and Bank of the Philippine Islands, the company said in a statement. It said the 1999 net profit, which did not have an extraordinary gain item, was up 6 pct from the 4.8 B pesos recurring profit posted in 1998. The company did not provide the revenues and expenditures figures. It said its consolidated resources rose 16 pct to 138 B pesos, with cash reserves rising 25 pct to 16 B pesos in 1999. The strong cash reserves enables the company to maintain its "ability to cover regular working capital requirements and address possible strategic opportunities." Ayala Corp's current and debt-equity ratios are at "comfortable levels" of 2.1 and 1.06, it said. Ayala Corp closed up 0.50 peso at 10.75.
- posted by StockMarket @ 11:06 PM

AC ( 02/23/2000 : AFX )
The net profit reported by Ayala Corp and Ayala Land Inc for 1999 offered no surprises, given the continuing weak consumer demand, Securities 2000 Inc analyst Erwin Balita said. Ayala Corp reported a net profit of 5.1 B pesos in 1999 against a net profit of 6.6 B and recurring profit of 4.8 B in 1998. Ayala Land reported a net profit of 2.6 B pesos in 1999 against 2.57 B in 1998. "The results were within expectations. Ayala Land's net profit was flattish, as expected," Balita said. The results "highlight the weakness of the property sector in 1999" but some improvement is seen for some segments, particularly the middle-income," he said. The government's stance of keeping interest rates low should boost consumer confidence, although actual spending for property hinges on the banks' willingness to lend. "The question there is whether banks will be willing to lend considering that their ROPOA (real and other property owned and acquired) has been increasing. So I think there's going to be a cap in terms of bank exposure to the property sector," he said.
- posted by StockMarket @ 11:05 PM

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