Anscor earnings jump 25.2% on gains from share sales

MANILA, Philippines - A.Soriano Corp. (Anscor) reported a 25.2-percent jump in its consolidated net income last year, boosted by gains from the sale of shares in eTelecare Global Solutions Inc. and Phelps Dodge Philippines Products Corp.

In a financial report filed with securities regulators, Anscor said its net earnings rose to P776 million from P619.8 million in 2007 as revenues jumped 86.8 percent to P2.28 billion.

In June 2008, Anscor sold 1.089 million shares in Phelps Dodge equivalent to 18.34 percent of the firm to General Cable Corp. of the United States for P641.49 million. With the purchase, General Cable’s total stake in the cable manufacturing firm went up to 60 percent from 40 percent, with the balance still held by Anscor.

In December, Anscor sold its six-percent equity in contact center company eTelecare to affiliates of Ayala Corp. and Providence Equity Partners for $9 per share.

Anscor said gains generated from these divestments were largely offset by reverses in the company’s financial portfolio and the additional impairment provision taken up in the books during the year on certain operating investments and receivables for conservatism purposes.

Locally traded shares portfolio recorded trading losses of P58.8 million while losses from sale of bonds and equity funds amounted to P131.2 million.

Anscor said it also marked-to-market its equities/bonds that were classified as fair value through profit and loss. These losses were reduced to some extent by foreign exchange gains from translation of foreign-denominated investments as the peso depreciated against the dollar last year.

Interest income dropped 26 percent to P98.8 million due to lower interest rates worldwide.

Overall, Anscor’s financial asset performance registered an actual loss of P66.8 million in 2008. “The larger context of this decline, of course, is the global financial meltdown which erased, in an estimate by Standard and Poor’s, $17 trillion in share value worldwide,” the company said.

In the face of a tough business climate, Anscor has taken steps to weather the economic storm as judiciously as possible and at the same time being alert for the opportunities that will arise from the turmoil.

Anscor reported that PDP Energy has strengthened its market leadership by offering new products to the broad market and new niches, and by continuing its lean manufacturing system to ensure a faster production cycle and shorter delivery lead time at lower cost.

PDP Energy has continued its thrust into the provincial areas, targeting growing industry segments such as mining, sugar ethanol plants and business process outsourcing facilities.

For Seven Seas, which owns a resort in Palawan, the group is building a new club house and two additional tennis courts scheduled for completion in early 2009 as part of efforts to lure more guests.