JG Summit swings to losses on weak peso, stock market

MANILA, Philippines - JG Summit Holdings Inc., one of the country's largest conglomerates, reported losses for 2008, reversing earnings that it posted during the previous year. The Gokongwei holding company incurred losses worth P694 million, resulting from foreign exchange volatility and mark-to-market losses, the company said in a disclosure to the Philippine Stock Exchange (PSE). The company’s net income reached P11.37 billion in 2007. "The net foreign exchange translation loss amounted to P2.93 billion, compared to a gain of P7.21 billion in the same period last year. This is a direct result of translating the value of the company's dollar-denominated assets and liabilities using a much devalued Philippine peso at the close of the year 2008," JG Summit said. Meanwhile, snack-maker Universal Robina Corp.'s bottomline slipped to P381.03 million owing to the absence of non-recurring gains and mark-to-market losses. Property arm Robinsons Land Corp., on the other hand, posted a 29-percent climb in net income to P3.15 billion, including an extraordinary adjustments to reduce provisions for deferred income tax amounting to about P300 million. "The adjustment resulted from the reduction in the legislated corporate income tax rate starting January 2009," the holding firm said. - GMANews.TV