Philippines News Archives

Monday, November 13, 2000

AC ( 11/13/2000 : PSE )
Ayala Corporation (AC) recorded a consolidated net income of PhP2.85 B for the nine-month period ended 30 September 2000 versus last year's PhP4.36 B primarily due to the continued pressure on the income performance of two of its major subsidiaries and the set up of reserves by the parent company. Reflecting the general slowdown in business activity, two of the conglomerate's largest subsidiaries, which have traditionally accounted for more than 60% of its consolidated net income, reflected declines in profitability. Ayala Land, Inc. posted a consolidated 9-month net income of PhP1.55 B, 16% lower than last year's PhP1.85 B as sales of land and condominium projects remained weak. Bank of the Philippine Islands registered a consolidated net income of PhP2.67 B, down by 37% compared to the same period last year due to sluggish loan growth, lower margins, and increased provisioning, as well as recognition of one-time expenses related to the merger with Far East Bank & Trust Company. The income slowdown of BPI and ALI was to a certain extent tempered by the continued growth in Globe Telecom's income, which hit PhP1.05 B, 62% higher than last year's PhP651 M. The growth was driven by an increase in the company's wireless subscriber base, which more than doubled to 2.12 M in a span of nine months. This factor and the other initiatives undertaken by the company to keep its competitiveness are outlined in a separate report to be issued by Globe in due course. Ayala's food subsidiary, Pure Foods Corporation, recorded a net income of PhP569 M, posting a recurring income growth of 10%. The company's consolidated net sales reached PhP8.67 B, 20% higher than last year. Pure Foods continued its dominance of the processed meats and flour markets. In the third quarter, the company set up reserves as a contingent measure to address the consequences of volatility in the financial market. Recognizing provisioning as a significant risk management tool, the company deemed it prudent to undertake such measure to cover the unpredictability of macroeconomics variables such as foreign exchange fluctuations and interest rate volatility which are expected to continue as a result of the protracted political crisis.
- posted by StockMarket @ 9:44 PM

AC ( 11/13/2000 : PSE )
Ayala Corp. recorded a consolidated net income of P2.85 B for the 9 month period ended Sept. 30, 2000 vs last year's P4.36 B primarily due to the continued pressure on the income performance of two of its major subsidiaries and the set up of reserves by the parent company. Reflecting the general slowdown in business activity, two of the conglomerate's largest subsidiaries, which have traditionally accounted for more than 60% of its consolidated net income, reflected declines in profitability. Ayala Land, Inc. posted a consolidated 9 month net income of P1.55 B, 16% lower than last year's P1.85 B as sales of land and condominium projects remained weak. BPI registered a consolidated net income of P2.67 B, down by 37% compared to the same period last year due to sluggish loan growth, lower margins, and increased provisioning, as well as recognition of one-time expenses related to the merger with Far East Bank & Trust Company. The income slowdown of BPI and ALI was to certain extent tempered by the continued growth in Globe Telecom's income, which hit P1.05 B, 62% higher than last year's P651 M. The growth was driven by an increase in the company's wireless subscriber base, which more than doubled to 2.12 M in a span of 9 months. This factor and the other initiatives undertaken by the company to keep its competitiveness are outlined in a separate report to be issued by Globe in due course. Ayala's food subsidiary, Pure Foods Corp., recorded a net income of P569 M, posting a recurring income growth of 10%. The Company's consolidated net sales reached P8.67 B, 20% higher than last year. Pure Foods continued its dominance of the processed meats and flour markets. In the 3rd Q, the company set up reserves as a contingent measure to address the consequences of volatility in the financial market. Recognizing provisioning as a significant risk management tool, the company deemed it prudent to undertake such measure to cover the unpredictability of macroeconomic variables such as foreign exchange fluctuations and interest rate volatility which are expected to continue as a result of the protracted political crisis.

- posted by StockMarket @ 9:43 PM

AC ( 11/13/2000 : AFX )
Ayala Corp and unit Ayala Land Inc were sharply lower on weaker-than-expected nine-month results, amid weak market sentiment due to the domestic political crisis, dealers said. At 11:20 a.m., Ayala Corp was down 0.30 pesos or 4.00 pct at 7.20 on volume of 493,000 shares. Ayala Land Inc lost 0.15 or 2.94 pct to 4.95 on volume of 4.15 M shares. The composite index was down 37.88 points or 2.33 pct at 1,454.26. On Friday, Ayala Corp announced nine-month net profit of 2.85 B pesos, against 4.36 B a year earlier, amid weaker results from its banking and property units. Ayala Land's nine-month net profit fell to 1.55 B pesos from 1.85 B a year earlier on weak sales of land and condominium projects. "The earnings of Ayala Land and Ayala Corp were below market expectations. We are definitely going to downgrade our earnings forecast for the two companies this year," according to April Lee, head of research at Citisecurities Inc. Lee said she has cut her 2000 net profit forecast for Ayala Land to 2.2 B pesos from the original 2.6 B. She said her brokerage is still arriving at a 2000 net profit forecast for Ayala Corp. "In general, both companies' net profit were below consensus estimates. I was looking at a nine-month net profit for Ayala Corp at 3.4-3.5 B pesos while Ayala Land was closer to 1.7-1.8 B pesos," according to Erwin Balita, an analyst with Securities 2000 Inc. Balita said Ayala Corp's net profit in the nine month period was lower due to provisions made to cover the the company against fluctuations in foreign exchange and interest rates. Ayala Land's nine-month earnings, on the other hand, were lower than expected due to weakness in the high-rise sector, Balita said. Balita said that he will likely downgrade his 2000 and 2001 net profit forecasts for the two companies. Balita originally forecast 2000 net profit for Ayala Corp at 5.1 B pesos and Ayala Land at 2.5 B. For next year, Balita said he expects net profit at 5.8 B pesos for Ayala Corp and 2.6 B for Ayala Land.
- posted by StockMarket @ 9:42 PM

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