Sun.Star Breaking News

MANILA — Ayala Corp., the Philippines’ largest conglomerate, said lower equity earnings and capital gains on its investments slashed its January-September net income by nearly half of last year’s.

Ayala said profits were down 43 percent to P7.8 billion ($159.2 million) compared to the same period last year.

Ayala President Fernando Zobel de Ayala said Wednesday the global economic slowdown and inflation in recent months had dampened consumer spending and affected “top-line growth” of some of the
company’s key businesses.

But he said despite the current difficulties, “each of our business units remains fundamentally sound, with sufficient liquidity and capitalization to keep them on track with their respective growth plans moving forward.”

On the bright side, the company said its property and water distribution businesses registered double-digit growth.

Ayala’s property developer, Ayala Land Inc., posted a 23 percent increase in net income to P3.8 billion ($77.6 million), boosted by a 37 percent expansion in revenues driven by sustained demand for
its residential projects. Middle-income housing, particularly for families of Filipino overseas workers, accounted for 70 percent of sales.

Manila Water Co. registered a 13 percent growth in net earnings as operating efficiencies continued to improve, the company said.

Ayala’s interests also include telecommunications, banking, electronics, mall operations and business process outsourcing. (AP)

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