JG Summit profit falls on weak airline, petrochem units

Rappler.com

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Cebu Pacific books forex losses, while the petrochemical unit posts a net loss

TWO GENERATIONS. Father and son, John Jr (right) and Lance (left) Gokongwei, address the stockholders of food firm Universal Robina Corp. in an annual meeting on April 18. Photo by Aya Lowe

MANILA, Philippines — The weak performance of its airline and petrochemical units pulled down Gokongwei-led JG Summit Holdings Inc.’s net income in the first half of 2013.

The conglomerate, controlled by the 5th richest in the Philippines based on a Forbes list, reported a 30.8% decline in January-June earnings to P5.17 billion from P7.47 billion in the same period of 2012.

JG Summit booked foreign exhange losses worth P2.97 million as the peso depreciated 5.2% to P44 against the dollar during the 6-month period – the lowest in two years.

The net income of budget airline unit Cebu Pacific fell 18.5% year-on-year to P1.41 billion on higher expenses and forex losses. Cebu Pacific has dollar-denominated long-term debt.

On the other hand, unit JG Summit Petrochemicals Corp. recorded a net loss of P568.43 million after shutting down production due to technical issues.

Other core units performed well in the first half.

Food and beverage manufacturer Universal Robina Corp. registered a first-half net income of P5.41 billion, versus P4.22 billion a year ago, thanks to strong beverage sales.

Property developer Robinsons Land Corp. earned P2.43 billion, up 8.7%, while banking unit Robinsons Bank Corp. booked P379.52 million profit, up 55.4%. – Rappler.com

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