MANILA, Philippines — DMCI Holdings, Inc. reported a 22 percent improvement in its net income (after minority) to P9.6 billion last year from P7.9 billion in 2010.
In a disclosure to the Philippine Stock Exchange, the firm said significant growth in the coal, nickel and power segments along with the sustained improvement in the real estate and water businesses caused the growth in consolidated bottom line.
It noted that growth was seen despite a slide in general construction and the non-inclusion of operating results from the firm’s former steel fabrication business.
For the year, mining was the main driver of the R1.7 billion increase in the DMCI’s income due to higher coal prices and improved operations in the nickel business.
The real estate and power generation segments also posted significant growth due to healthier housing sales and increased generation capacity coming from the rehabilitated Calaca unit 2.
Investments in the water business, accounting for 23 percent of total net income, registered modest improvements, testament of the sustained and consistent operations evident in the utilities sector.
This year marks the non-inclusion of Atlantic Gulf & Pacific Company of Manila, Inc., DMCI’s previously owned steel fabrication business which was sold in December 2010 and contributed almost 9 percent of last year’s net income.
For 2011, water investment contributions from Maynilad Water Services, Inc. reached P2.2 billion, up by a respective 16 percent from the previous year.
The construction business experienced a marginal decrease from its unprecedented growth last year due to the completion of big infrastructure projects with no new infra projects awarded.
The lower earnings was also because last year’s income included the recognition of change orders from the Shangrila Boracay project where the costs were conservatively booked in the previous years.
DMCI’s real estate business, under the brand name DMCI Homes, recognized an impressive 40 percent increase in net contributions from w1.3 billion last year to P1.8 billion this year as realized housing sales for the year grew by 25 percent to R8.2 billion.
Semirara Mining Corporation (SMC), DMCI’s coal and power unit, reported an improvement in operations with a net income of around P4.1 billion for coal mining and P1.9 billion for power generation in 2011 compared to R2.6 billion and R1.3 billion respectively in 2010.
source: mb.com.ph
