Crown jewel

It’s now official: PLDT is now First Pacific’s most profitable investment.

While PLDT, through wholly owned subsidiary Smart Communications, has reported remarkable earnings growth for the past so many years, the situation has not been equally good for First Pacific’s other company, Indonesia-based Indofood.

Despite favorable macro economic indicators in 2003 evident in a stronger rupiah foreign exchange rate, low inflation, Indonesia’s GDP growth of 4.1 percent and falling interest rates, operating conditions over the course of the year were affected by increased competition and raw materials costs driven by higher imported wheat and CPO prices.

While consolidated net sales grew nine percent over 2002, net profit declined 25 percent from 2002. This was mainly due to increases in interest expenses as well as net foreign exchange losses compared to net foreign exchange gains in the previous year.

First Pacific holds a 51.5-percent economic interest in Indofood, which is Indonesia’s leading processed foods group and the world’s largest noodle maker. Its principal businesses include noodles, flour and edible oils and fats and it has also interests in distribution, food seasonings, baby foods and snack foods businesses.

In fact, some of Indofood’s food seasoning products are already being sold in the Philippines although through unofficial channels. According to First Pacific managing director and CEO Manny Pangilinan who was also elected in Indofood’s recent annual general meeting as president commissioner (former Nestlé Phils. CEO Juan B. Santos was also named independent commissioner), they are now looking at finally distributing their products here.

A look into PLDT and Indofood’s financial situations is relevant considering that a few years’ back, First Pacific wanted to dispose of its 24.4-percent stake in PLDT and retain Indofood. However, Pangilinan successfully defended the Hong Kong-based conglomerate’s investment in the Philippines and is now being proven right in his decision.

From Energy To Finance

There are very rampant rumors that Energy Secretary Vince Perez will be named to the top Department of Finance post.

What can I say other than he is more than qualified for the position. Before joining the government, he was the highest paid Filipino investment banker in Wall Street. His credentials are impressive.

When I asked him about the rumors, he said that if it is offered to him, he may consider it but says the challenges are daunting. Vince however stresses that he is not lobbying for any Cabinet position after June 30.

Special Number For The Blind

It seems that the Philippine Long Distance Telephone Co. (PLDT) may not be required to bring back its dial 114 free directory assistance service after all.

According to National Telecommunications Commission (NTC) chief Ronald Solis, it seems that PLDT is not required after all by law to offer the 114 number and that the free telephone directory that is being given to all subscribers would suffice.

It seems that it was only an old NTC policy that required PLDT to offer 114 for free, a policy which Solis says he can change anytime given the right justification.

When PLDT replaced 114 with the 187 number that offers paid directory assistance for P3 per inquiry, it created quite an uproar on the part of the blind. Obviously, they no longer have access to free directory services since they cannot read the telephone book. The argument however stems from the assumption that PLDT is required to give directory assistance, whether through the telephone or through a printed directory.

In fairness to PLDT, it has considered the possibility of producing a Braille-version of the printed directory. However, PLDT officials say it might be very expensive on their part to do that. So now, the company is looking at coming up with a special number for the visually impaired and only those PLDT landline subscribers who are registered with some association for the blind will have access to this number.

For comments, e-mail at [email protected]