C&P bares lower net loss

Low-cost housing developer C&P Homes Inc. said its net losses declined to P394 million in the first nine months of the year from P718 million in the same period a year ago due to lower interest expense and foreign exchange losses.

Based on financial statements filed with the Securities and Exchange Commission, interest expense and forex loss dropped 16 percent to P893 million from P1.06 billion in 2001.

Total cost and expenses also went down to P1.95 billion from P2.075 billion as the rationalization and streamlining of the company‘s operations started to pay off.

C&P registered net sales of P1.6 billion or almost flat growth from the previous year‘s P1.62 billlion. Sales came mainly from the affordable and middle income market.

Interest income fell almost 50 percent from P76 million to P151 million due to a shift in buyers‘ preference for zero-interest deferred financing and lower market interest rates of financing that the previous year‘s prevailing interest on in-house borrowings.

Miscellaneous income also went down from P92 million to P32 million or 65-percent reduction due to lower incidental income arising from the cancellation of buyers’ accounts.

As of end-September, the company’s debt stood at P11.9 billion as against P12.1 billion in the same period in 2001.

C&P’s operations have been relatively flat for the past three years as sales volume have been reduced on account of, among others, selective credit granting policies, restricted availability of credit and the slowdown in real estate development.

To cover for reduced sales volume in the low cost segment, C&P has intensified its marketing efforts in the affordable to middle-income segments of the market through redevelopment plans on existing projects, well-thought of master-planned communities on expansion areas and by offering attractive financing terms to homebuyers.

C&P continues its program to reduce debt. As of Sept. 30, the company had bank loans of P1.42 billion.

Among its creditor-banks are Bank of the Philippine Islands (P300 million), Equitable-PCIBank (P365 million), International Exchange Bank (P106 million), and Rizal Commercial Banking Corp. (P647 million).