In its financial report filed with the Securities and Exchange Commission, C&P said its net losses in 2002 amounted to P970.33 million, an improvement from the P2.95 billion losses incurred a year earlier.
C&P said higher real estate sales also contributed to the significant improvement in its financial performance. Revenues rose 15 percent to P2.23 billion last year compared with only P1.95 billion a year ago. Thus, from an operating loss of P50.1 million in 2001, the company turned around with an operating profit of P404 million.
Significant cost reduction has likewise been made in operating expenses as its ratio over sales stood at a low level of 28 percent compared to 44 percent in 2001. Operating expenses went down to P636.19 million from P863.31 million. The company’s rationalization and streamlining of the administrative and support services alone resulted to a P227 million cost savings.
C&P’s operations have been greatly affected by the general decline in the real estate industry as the low-cost housing sector was faced with reduced sales volume on account of selective credit granting policies.
In response to the reduced sales volume in the low-cost segment, the company rationalized its sizeable inventory of rawland for socialized housing projects that cannot be disposed of given the unfavorable market conditions.
To address the deterioration in the financial and operating conditions of the company and its subsidiaries, C & P said its management will continue to implement measures geared towards generating liquidity to meet customer commitments and strengthen the company’s overall financial viability.
The more significant components of these measures are the sale of certain assets, continuing settlement of obligations through outright and unconditional sale of real estate properties as well as the focus on core business expertise specifically to cater to the mass housing needs.