Corporate earnings surge by 18% from January to September 2012

CORPORATE earnings grew by 18 percent in the first nine months of 2012 due to the improved performances of nearly all sectors, the Philippine Stock Exchange (PSE) said Wednesday.

In a study, the PSE said combined net incomes of listed companies increased by 17.9 percent to P377.12 billion from P319.97 billion in the same period last year.

Data was gathered from the financial statements of 229, out of 252 listed companies submitted during the period between October 1 and December 14.

"The growth in nearly all sectors has also demonstrated the strength of the Philippine economy which, barring any negative circumstances, should continue to support expansion next year," said PSE president and chief executive officer Hans Sicat.

Meanwhile, consolidated revenues of listed companies increased by 20.1 percent to P3.29 trillion from P2.74 trillion in the first nine months of 2011.

Five out of six sectors recorded positive net income growths during the first nine months of 2012 led by the Industrial Sector.

Similarly, on a revenue basis, five out of six sectors registered higher revenues, with the Industrial Sector again leading the way with a 25.6 percent jump.

For the period, the consolidated income of the Industrial Sector increased by P38.63 billion or 52.1 percent due to gains on the sale of interests in subsidiaries, and increased equity in net earnings of associates to name a few.

Also, securities trading gains was the main proponent for the P14.46 billion or 26.6 percent net income increase in the Financials Sector.

Combined profits of the Holding Firms Sector increased by P17.22 billion or 22.7 percent mainly due to improved income contributions of subsidiaries and associates.

Consolidated income of the Property Sector increased by P4.73 billion or 16.1 percent as a result of increased real estate sales, and improved rent revenues from newly opened malls.

The combined income of the Services Sector went up by P2.30 billion or 4.5 percent after benefiting from nonrecurring gains, and new store openings among others.

On the other hand, the Mining and Oil Sector's aggregate income dropped by P20.19 billion or 57.7 percent in the absence of one-time gains, effects of suspended mining operations and lower nickel prices in the world market.

"We've seen positive income growth from listed firms for the last three quarters. Companies have been positioning themselves to take advantage of the burgeoning economy, which should enable them to create more profits. The Exchange, for its part, continues to encourage companies in utilizing the market to raise capital and fund their expansionary activities," Sicat said. (SDR/Sunnex)