Conglomerates GT Capital Holdings Inc., Filinvest Development Corp., and Lopez Holdings Inc. reported mixed financial results in the first half.
GT Capital said in a disclosure to the stock exchange first-half net income fell 1 percent to P7.1 billion, as the strong results from its banking, infrastructure and insurance businesses failed to offset the lower income contribution from its automotive business.
“As anticipated, our first-half results reflect the slowdown in the auto industry’s unit sales. This is attributed to the front-loading of orders late last year in anticipation of the Train [Tax Reform for Acceleration and Inclusion] law and the run-out of the previous generation Vios during the second quarter,” GT Capital president Carmelo Maria Luza Bautista said.
“We are expecting that market demand may normalize by the fourth quarter and resume its growth momentum by 2019 due to Toyota Motor Philippines’ new model launches and sufficient inventory. On the other hand, our affiliates Metrobank, Axa Philippines, Metro Pacific and TFS delivered strong results, mitigating the soft numbers from the auto sector,” Bautista said.
FDC, the listed holding company of the Gotianun family, registered a first-half net income of P7.2 billion, a 45-percent increase from the same period last year.
First-half revenues increased by 12.4 percent to P36.44 billion from P32.44 billion a year earlier. The group’s property business, which includes both the real estate and hotel groups, accounted for 44 percent of total sales, followed by banking with 38 percent.
Power accounted for 11 percent, while sugar business contributed the balance of six percent.
“We believe that our investments in power and infrastructure can yield returns that balance out our more cyclical business segments. Steady and stable revenues from the rental, power, sugar and infrastructure sectors will help to smooth out the waxing and waning of the business cycle. In addition, investing in airport infrastructure will complement our projects in hospitality and BPO rental properties,” FDC president and chief executive Josephine Gotianun Yap said.
Meanwhile, Lopez Holdings said net income in the first half jumped 23 percent to P2.174 billion from P1.76 billion, a year ago on stable performance of energy business under First Philippine Holdings Corp.
Unaudited consolidated revenues increased 14 percent year-on-year to P58.67 billion.