ATI reports higher revenues in Quarter 1

Asian Terminals, Inc. (ATI) recently reported first quarter revenues of P874 million, a substantial 12-percent increase compared to last year’s earnings. The latest performance came despite a slow start in cargo trade this year due to economic and political concerns.

The difficult business conditions during the first quarter slowed down the movement of general and bulk cargoes but container and logistics related volumes made up for the deficit. The increase in the company’s revenues was also due to the increase in cargo handling tariff rate. Effective Feb. 1, 2001, the Philippine Ports Authority (PPA) granted increases in tariff rates of 15 percent for stevedoring services and 10 percent for arrastre services.

Operating profit increased to P215.8 million in the first quarter 2001. Better results could have been achieved were if not for the high interest rates that still affected bottom line results despite the company’s strong balance sheet. Net income for the first quarter 2001 amounted to P78 million.

ATI has also benefited from its commercial logistics business, which now accounts for 11 percent of overall revenues, and is expected to grow steadily. ATI’s expertise in this field has expanded its roster of clients, which includes the Shell-Malampaya natural gas exploration project, Mobil Philippines, Ford Motors, General Motors, Honda Cars, Goodyear Tires, SC Johnson Co., Procter & Gamble and Nestle Phils.

ATI is optimistic that the economic uptrend will start in the second semester of 2001. This year, ATI will press forward with its planned capital expenditures for the modernization and expansion of the South Harbor and its other facilities estimated at P1 billion.

During the last stockholders’ meeting on April 26, 2001, a cash dividend of P.085 per share for stockholders of record as of May 25, 2001 was declared. A total amount of P170 million shall be paid on June 22, 2001.