Ayala income down 22% to P5.1 B in '99

Ayala Corp. reported yesterday its unaudited results for 1999. The company's yearend consolidated net income of P5.1 billion was lower by 22 percent from the year-ago level of P6.57 billion, mainly due to flat or lower results of Ayala Land Inc. and Bank of the Philippine Islands (BPI).

Ayala Corp. reported a 16-percent growth in its consolidated resources to P138 billion. Cash reserves rose by 25 percent to P16 billion, maintaining the company's ability to cover regular working capital requirements and address possible strategic opportunities. Current and debt-equity ratios are at comfortable levels of 2.1 and 1.06, respectively.

The group's real estate subsidiary Ayala Land ended the year on solid ground with revenues of P8.9 billion despite the continued softness of the overall property market. ALI generated a consolidated net income of P2.6 billion with lease operations accounting for 31 percent of consolidated revenues.

BPI registered a consolidated net income of P4.03 billion. This was 12 percent lower than the previous year's level as loan demand remained soft and spreads narrowed with declining interest rates. Nevertheless, BPI remained one of the country's best-managed banks with its low NPL ratio of 6.8 percent. Its return on equity of 13.7 percent and return on assets of 1.8 percent remains the highest among universal banks.

Globe Telecom ended 1999 on a strong note with revenues of P9.4 billion and a net income of P939.5 million. Total assets stood at P36.5 billion while stockholders' equity was at P13.5 billion. Globe Telecom is now the country's second-largest cellular company capturing 30 percent of the market, rising from eight percent two years ago and the undisputed digital cellular leader with a 75-percent market share.

Pure Foods Corp. posted sales revenues of P10.8 billion and net profits of P727.6 million. As all operating units registered growth in sales and profits, recurring operations grew by 162 percent to P615.9 million from the previous year's level. The processed meats business, which is now under The Pure Foods Hormel Corp., remained the largest contributor with tonnage sales growing by 32 percent driven by strong sales of hotdogs.

Cognizant of the changing competitive landscape, Ayala Corp. continues to seek out emerging opportunities for long-term growth. Recently, it launched the Ayala eCenter website to enable consumers throughout the globe to purchase the group's products and services. The company also established a new company called iAyala Co. Inc. to tap potentials emerging from IT convergence trends within the group and develop relationships in the growing e-commerce and internet-centric communities.