Listed firms' profits dip 22.6% to P107B in Q1

MANILA, Philippines - The aggregate earnings of listed companies fell by more than a fifth in the first quarter this year despite generating higher revenues, according to data from the Philippine Stock Exchange.

The combined net profit of listed firms dropped 22.6 percent from January to March 2011 to P106.98 billion from P138.21 billion the same period a year earlier. The decrease was mainly due to lower net earnings recorded by firms in the industrial, holding and services sectors.

Consolidated revenues, however, inched up 10 percent to P857.78 billion from P779.8 billion.

Data was gathered from the first quarter 2011 financial statements of 228 out of 247 domestic listed firms which submitted their reports to the exchange.

“The first quarter earnings of our listed firms reflected the slower growth of our economy after coming from an election year and dealing with tighter government spending. It appears that this is also a consolidation phase similar to what our market experienced after a phenomenal run last year,” said PSE president and chief executive officer Hans B. Sicat.

Nevertheless, Sicat remains upbeat on the prospects of listed corporations, with the main index barging into new record highs.

“Hopefully, our firms’ second quarter corporate earnings, which should be released between this month and the next, will be able to validate this renewed confidence,” Sicat said.

The mining and oil sector posted the biggest increase in cumulative earnings, rising 378.9 percent on the back of higher metal prices overseas.

Meanwhile, the industrial sector experienced a 47.6-percent decline as some companies, like First Philippine Holdings Corp., posted lower revenues. The decrease in FPHC’s net income was a result of lower electricity sales and reduced equity in net earnings of associates. San Miguel Brewery also suffered a drop in net earnings due to a non-recurring gain from the acquisition of San Miguel Brewing International Ltd. Aboitiz Power Corp. and Energy Development Corp. likewise experienced reduced net profits, on account of lower sales volumes and lower average selling prices.

The combined net income of the holding firms’ sector dipped 21.3 percent while the financial services sector slipped 7.1 percent.

The financial sector’s collective net income, on the other hand, went up a meager 1.1 percent while the property counter reported a 19.4 percent jump in aggregate earnings on higher sales volumes of both residential units and commercial lots.