MacroAsia eyes doubling of net income

Manila Times.net

MACROASIA Corp. on Friday said it expects to double its net income in the next two to three years mostly because of its venture in the water and mining businesses.

“In two to three years, we expect to double our profits assuming that our projects kick in,” Joseph Chua, president and chief executive of MacroAsia told reporters on the sidelines of the company’s stockholders’ meeting.

The company’s net income hit P406 million last year, a 29-percent increase from P316 million in 2009.

For this year, MacroAsia expects to earn $200 million to $300 million.

Chua attributed the lower profits this year to foreign exchange risks and weak sales of its catering business because of the advent of budget airlines.

He said the company plans to revive its proposal to the government to develop a cargo terminal.

“We have to update our proposals to MIAA,” he said, referring to the Manila International Airport Authority.

“Looking forward, we remain cautious in our business outlook as a group, considering the prevailing uncertainties in our operating environment. Nevertheless, we continue to seek new opportunities for MacroAsia to grow through new business,” Washington Sycip, chairman of MacroAsia said.

Earlier, MarcoAsia, through a consortium of its 100-percent subsidiary, MacroAsia Properties Development Corp. and Watergy Business Solutions Inc., signed an agreement with the Maragondon Water District to pursue and implement a bulk water supply project.

The project shall be developed within two years, with an initial project investment of about P2.5 billion.

MacroAsia recorded a consolidated net income of P83.4 million in the first quarter, or 32 percent lower than the P122.3 million booked for the same period in 2010.

The company said the decrease was driven by the lower share in the net income equity of its associates, particularly Lufthansa Technik Philippines Inc., because of lower volume of maintenance, repairs and overhaul services.

MacroAsia shares rose to P3.18 on Friday from P3.15 the day before.

DARWIN G. AMOJELAR