Listed firms post 46% profit hike in first half

MANILA, Philippines - The combined net earnings of companies listed on the Philippine Stock Exchange jumped 46.3 percent in the first half this year to P193.43 billion, indicating that major firms have recovered from the global financial crisis.

Based on a PSE study of the unaudited financial statements filed by listed companies, a total of 164 companies posted positive operating results while 65 firms incurred net losses.

The combined net income of companies that make up the main index grew 40.8 percent to P141.47 billion from P100.5 billion a year earlier.

These firms registered total revenues of P1.32 trillion, up 4.8 percent from P1.26 trillion.

“The recent recovery in net earnings for the first half is reflective of improving market conditions and an easing of global costs. We are taking all these trends as positive signs that we are staying on the path of a global economic recovery,” said PSE president and chief executive officer Francis Lim.

During the period under review, the benchmark PSE index (PSEi) rose 30.2 percent, reaching a high of 2,886.96 points on Aug. 4, 2009.

“The positive income results show that the recovery of the index finds a strong basis fundamentally,” Lim said.

Net earnings from the industrial sector surged 88.6 percent as blue chip San Miguel Corp.’s net income went up almost three-fold following the sale of its 43.25 percent stake in San Miguel Brewery to Japanese brewer Kirin in May 2009.

The holding sector, on the other hand, reported a 41.4 percent growth in net income, mainly due to increased revenues of Gokongwei-owned JG Summit Holdings Inc.

The services sector, meanwhile, posted a 31.8 percent rise in earnings. This was attributed to PAL Holdings Inc.’s P4.8-billion gain in net income as a result of the 24 percent contraction in expenses from flying operations.

The financial sector reported a 25.4 percent jump in net income, driven by strong interest income of banks.

Earnings of the property and mining sector, however, declined 3.6 percent and P54.9 percent, respectively.