Corporate profits grow 24% in 1st qtr

The Philippine Stock Exchange (PSE) said combined net income grew by 24 percent to P134.66 billion in the first three months of 2012 from P108.60 billion in the same period last year due to better performances showed by financials, industrial, property and holding firms sectors.

Meanwhile, consolidated revenues of listed companies increased by 18.9 percent to P1.02 trillion in 2012 from P858.34 billion in the first three months of 2011.

“The robust first quarter results of listed companies validate the impressive performance our market has had so far, highlighted by the PSEi rewriting record highs 19 times already this year. This also underscores the fundamental soundness of our companies, which add to their potential for consistent future performance,” PSE president and chief executive officer Hans Sicat said.

Four out of six sectors recorded positive net income growths during the first quarter of 2012 led by the financials sector, which surged by 73.2 percent. On a revenue basis, five of the six sectors registered higher revenues, with the financials sector again leading the way with a 26.6 percent jump.

Securities trading gains were the main proponent for the 73.2 percent collective net income increase of firms in the financials sector.

Meanwhile, the consolidated profits of companies in the industrial sector increased by 31.9 percent due to nonrecurring gains, and increased contributions from subsidiaries.

Combined net income of firms in the property sector increased by 25.1 percent on account of improved real estate sales.

Companies in the holding firms sector experienced a 22.7 percent increase in their collective net income due mainly to dividend earnings and improved income contributions of their subsidiaries and associates.

The profits of firms in the services sector meantime went down by 8.2 percent on account of the absence of nonrecurring gains and higher costs of sales and operating expenses.

Aggregate net earnings of companies in the mining and oil sector dropped by 25.7 percent due to increased costs and operating expenses as well as the absence of extraordinary gains from debt settlements.

“With the stable macroeconomy supporting a thriving business environment, our local market is poised to continue its upward trajectory. And despite concerns in the global landscape, particularly the long-running debt saga in Europe and worries over an economic slowdown in China, we enter the second half with considerable optimism that we can sustain this exciting pace,” Sicat said.