Aboitiz Equity profit shows mild increase
Monday, May 15, 2006
XFN-Asia
ABOITIZ Equity Ventures said its first quarter to March net profit grew five percent year-on-year to 650 million pesos due to higher contributions from its banking and food business.
The conglomerate's earnings before interest, taxes and depreciation (EBITDA) for the January to March period stood at 1.3 billion pesos and earnings per share at 0.132 pesos.
In a statement, Aboitiz Equity said its power generation and distribution business remained the largest contributor to its earnings, but in the period under review the segment contributed 10 percent less to earnings compared to the 456 million pesos of the previous year.
Income from its electricity distribution business grew 10 percent year-on-year despite weak volume growth, but earnings from power generation declined due to the poor performance of its hydropower plants, Aboitiz Equity said.
Meanwhile, the conglomerate's banking subsidiaries contributed 342 million pesos, up five percent from the year before.
Aboitiz Equity owns Union Bank of the Philippines, which is set to acquire up to 100 percent of International Exchange Bank--a move that would create the country's seventh largest private bank in asset terms.
Its transport group had a net loss contribution of 126 million pesos, far below the year-earlier loss of 97 million as higher fuel costs pressured operating margins.
Passenger and freight volumes also declined amid stiff competition and a weak market, resulting in a 12 percent decline in revenue.
Aboitiz Equity's Pilmico Foods Corp. contributed 103 million pesos in revenues, up 55 percent driven by a surge in its feeds and swine business volumes.
At end-March, the conglomerate had total assets of 40.1 billion pesos and consolidated debt of 19.2 billion pesos.
(One dollar = 51.64 pesos)
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