MacroAsia earns P123-million net income in 2nd quarter

MANILA, Philippines - MacroAsia Corp., the aviation services arm of the Lucio Tan Group of Companies, posted a net income of P122.89 million in the second quarter this year, up 86.11 percent from the same period a year ago on higher revenue growth from its subsidiaries led by Lufthansa Technik Philippines (LTP).

This brings MacroAsia’s first half net earnings to P244.52 million or 78 percent higher than the previous level of P137.41 million, mainly due to the 43 percent growth in the company’s share in the net income of its associates.

Net earnings of LTP, a joint venture between the company and Lufthansa Technik AG of Germany, grew 47.75 percent during the period January to June 2009 to P475.12 million as it continued to attract more foreign airline clients. LTP contributed P232.81 million to MacroAsia’s total income.

LTP provides aircraft maintenance, repair and overhaul services from its facility in NAIA to Philippine Airlines, Lufthansa Airlines, Singapore Airlines, Cathay Pacific Airways and other international airlines that fly to Manila. It also provides technical ground handling services to various international clients.

Service revenues rose 13.4 percent in the second quarter to P292.9 million and 13 percent to P560.89 million in the first half.

MacroAsia said its inflight catering revenues improved by 12 percent due to the higher number of meals served during the second quarter while ground handling services continue to show strength, posting a 23 percent growth in revenues from P92.2 million.

Charter flight revenues recovered from last year’s low sales, registering a 21 percent growth in income to P1.6 million, largely due to some scheduled repairs and maintenance.

Due to aggressive cost cutting strategies implemented by the group, selling and general administrative expenses declined by one percent to P125.8 million. Direct cost increased only by 0.15 percent despite higher revenues.

Given the continued appreciation of the peso from its yearend level, the group incurred foreign exchange losses amounting to P2.6 million, which is P2.8 million lower than last year’s level. 

From P3.3 million last year, interest expense declined by 28 percent due to lower loan balances and lower interest rates prevailing during the year.

As of end-June this year, MacroAsia’s total consolidated assets went up seven percent.

MacroAsia , which has   revived its mining operation, expects to complete its exploration activities on its nickel mine in Brooke’s Point, Palawan early next year.