Ayala Corp. sets 2014 capex at P190B, says 2013 net income up 22 % to P12.8B

Conglomerate Ayala Corp. is spending P190 billion this year to finance investments in real estate, banking, telecommunications, and water concerns and to ramp up its spending on new businesses.

 

The money earmarked for capital expenditures in 2014 is up 58.3 percent from P120 billion last year.

 

Net income totaled P12.8 billion in 2013, up  22 percent year-on-year and mainly driven by the financial results of core businesses, the company said in a disclosure to the Philippine Stock Exchange.

 

Equity earnings from business units rose by 23 percent to P17.6 billion, according to Ayala Corp.

 

"We are encouraged by the strong performance across our business units as they reap the benefits of the aggressive growth strategies they started a few years back,” said Fernando Zobel de Ayala, president and chief operating officer.

 

“In turn, we have also been able to optimize earnings and value at the parent level as we continued to

rebalance our portfolio and adjusted our ownership, particularly in our banking and water units, over the past year," he added. 

 

Without the bottom line impact of accelerated depreciation from its telecom unit, Ayala Corp. would have a group core net income of P14.8 billion, the company said.

 

"As we ramp up our power business and as the economic environment remains sound, we are optimistic we can sustain double-digit earnings growth through 2014," Zobel noted.

 

Consolidated revenues increased by 22 percent to P159.4 billion from P130.6 billion a year earlier.

 

The conglomerate includes Manila Water Company Inc., Ayala Land Inc., Bank of the Philippine Islands, Globe Telecom Inc. and Integrated Micro Electronics Inc. as its significant subsidiaries. – VS, GMA News