Listed firms’ net earnings up 26% in 1st half of year-A A +A
Sunday, October 21, 2012
THE combined net incomes of listed firms in the first half grew by 26.4 percent to P271.02 billion from P214.40 billion in the previous year due to better performance showed by the Industrial, Financials, Holding Firms, Property, and Services Sectors, the Philippine Stock Exchange (PSE) said.
Meanwhile, consolidated revenues of listed companies increased by 21.0 percent to P2.24 trillion from P1.85 trillion in the first half of 2011.
“We are optimistic that net income growth will be sustained for the third quarter as listed companies continue to realize profits from the positive local economic climate.
The improved earnings data further support investor confidence in our market, which continues to rewrite record highs in various indicators such as index levels, market capitalization, trading activity and capital raising,” said PSE president and chief executive officer Hans Sicat.
Five out of six sectors recorded positive net income growths during the first half of 2012 led by the Industrial Sector, which surged by 62.9 percent. On a revenue basis, all the sectors registered higher revenues, with the Industrial Sector again leading the way with a 24.4 percent jump. The Industrial Sector benefited from one-time gains as well as increased equity in net earnings of associates.
Securities trading gains, on the other hand, were the drivers for the 36.6 percent net income increase in the Financials Sector.
Combined profits of the Holding Firms Sector rose 25.9 percent due to improved income contributions of subsidiaries and associates.
Consolidated income of the Property Sector climbed 9.5 percent as a result of increased real estate sales and improved rent revenues from newly opened malls.
Nonrecurring gains and improved volumes contributed to an increase in the Services Sector’s combined income. However this was tempered by higher expenses due to higher costs of sales and operating expenses. As a result, the combined income of the Services Sector inched up by only 0.3 percent.
On the other hand, the Mining and Oil Sector’s aggregate income dropped by 28.3 percent due to lower production volumes and the absence of one-time gains. (PR)
Published in the Sun.Star Cebu newspaper on October 22, 2012.