Saturday, July 30, 2011

Lower power sales damp Aboitiz profit

Manila Times.net
Published : Saturday, July 30, 2011 00:00  Written by : r


ONE-TIME gains lifted the earnings of Aboitiz Equity Ventures Inc. (AEV) in the second quarter, but the lower sales and selling price of its power business continued to drag the conglomerate’s net income in the first half. 
In a disclosure to the Philippine Stock Exchange, AEV said its consolidated income rose by 11 percent to P5.6 billion in the second quarter as the revaluation of consolidated dollar-denominated loans and placements resulted in one-time gains.

An associate company of Aboitiz Power Corp. booked a one-off gain after it received cost reimbursements from state-owned National Power Corp. relating to its fuel imports.

Without non-recurring gains, AEV closed the April to June period with a core profit of P5.4 billion, duplicating last year’s level.

The conglomerate ended the first semester with a consolidated net income of P10.2 billion, recording a decline of 9 percent year-on-year.

Minus one-time gains, core earnings for the first semester fell 15 percent to P9.7 billion.

AP accounted for 80 percent of AEV’s profit in the January to June period, followed by its banking and food units, which contributed 14 percent and 6 percent, respectively.

AP’s income contribution fell to P8.1 billion in the first half from last year’s P9.7 billion. When adjusted for non-recurring items, the power business recorded a 23-percent decline in its earnings share, from P9.8 billion to P7.6 billion.

Union Bank of the Philippines and City Savings Bank posted growth in the first six months of the year, recording a combined 49-percent improvement to P1.4 billion from P964 million.

Union Bank’s earnings contribution jumped 36 percent to P1.2 billion after non-interest income more than doubled to P4.5 billion on higher securities trading gains and premium revenues as a result of aggressive marketing efforts to push its subsidiary’s pre-need plans.

Income contribution of non-listed thrift bank City Savings surged 246 percent to P211million on higher interest income from loans and services. This was boosted by AEV’s increased ownership in the bank from 39 percent to 99.30 percent.

Wholly owned food-manufacturing unit Pilmico Foods Corporation recorded a 25-percent drop in its income contribution from P867 million to P650 million.

The decrease in profit was attributed to higher input costs despite volume increases across all businesses and higher selling prices for the period

The bottom-line contribution of the flour, feeds and swine segments was reduced by 37 percent, 7 percent and 38 percent, respectively.

AEV shares inched up to P41.90 apiece on Friday from P41.80 the day before.

No comments:

Post a Comment