Concepcion Industrial posts 36% profit hike

MANILA, Philippines - Concepcion Industrial Corp. reported its attributable net income for the first nine months of P495 million, a 36-percent growth from same period last year.

Strong momentum for the period was achieved on the back of a 24-percent growth in sales which amounted to P6.9 billion as of September 2014.

Third quarter performance growth remained strong and steady at 15-percent up-tick in sales and 20-percent jump in earnings.

Favorable economic fundamentals positively boosted the company’s performance with a few challenges in the third quarter brought about by the peso depreciation and rising logistic costs which has affected industries across the board.

Key drivers to overall performance were strong growth in air conditioning sales from firsttime buyers and the replacement market with increasing popularity of inverter technology; continued expansion in commercial projects; and increased profitability of the domestic refrigeration business as cost reductions and investments in high-margin products have gained traction. The latest acquisition, Concepcion Otis Philippines Inc., was fully integrated starting Q2 2014 which also helped boost the company’s earnings for the period.

CIC CEO and chairman Raul Joseph A. Concepcion said: “We have remained focused on our goal of strengthening our core businesses while expanding into new markets and customer segments. We need to ensure that as we broaden profitability through expansion and synergies, we do not lose sight of our need to invest in Company processes, people and leadership to secure our cornerstones in achieving our goals and long-term targets for 2015 and beyond.”

Chief finance and information officer Victoria A. Betita added: “The third quarter has posed a few challenges but CIC continues to keep its eye on the prize while maintaining cost and profitability disciplines within the organization. We are set to meet this year’s targets and ready to move into 2015 with the same upward focus and drive.”

CIC earlier declared cash dividends of 30 percent of prior year’s net income or P0.59 per share (based on 2013 results) paid last April 2014. A special 30-percent stock dividend was also declared on Aug. 22, 2014 and paid last Sept. 8.