Ayala Corp. says 2012 net income up 12%

Publicly-listed Ayala Corp. on Monday said consolidated profits leaped 12 percent in 2012 on a strong showing of its property, banking and water utility units, prompting the company to invest P135 billion in capital expenditures for existing businesses and strengthen its forays into the power and transport sectors. 

 

In a disclosure to the Philippine Stock Exchange, the country's oldest conglomerate said consolidated net income rose by 12 percent to P10.6 billion from P9.4 billion year-on-year. 

 

The growth was a turnaround from the 16 percent profit contraction in 2011. 

 

Ayala Corp. attributed the profit surge to “strong performance of its core real estate, banking and water businesses,” which saw earnings grow by double digits.

 

Core net income—which excludes the impact of depreciation from the company's telco unit and revaluation gains by its property and electronics arms—expanded by 32 percent to P11.6 billion. 

 

Consolidated revenues increased by 16 percent to P125 billion, driven by “robust equity earnings” from the automotive, electronics and business process outsourcing segments.

 

The conglomerate, meanwhile, revealed total capital expenditure worth P135 billion for this year. 

 

“[T]he Ayala Group earmarked about P135 billion in capital expenditures to fund investment programs in its property businesses as well as new investments in power and transport infrastructure,” the disclosure read.

 

Last year, the conglomerate collectively spent P150 billion—the highest in the companies 179-year history—for this purpose, including the acquisition of DBS Bank Ltd.'s 10.4 percent stake in Bank of the Philippine Islands as well as power assets to build a portfolio in the sector. — Siegfrid Alegado/VS, GMA News