Listed companies' earnings rise 18 pct in 9 mos


Posted at Jan 02 2013 11:26 AM | Updated as of Jan 02 2013 07:26 PM

 MANILA, Philippines - The earnings of listed companies rose by 18% in the first nine months of 2012 as all sectors, except for mining and oil, saw improved profits and revenues. 

The Philippine Stock Exchange said combined net income of listed companies rose by 17.9% to P377.12 billion in the January to September period, from P319.97 billion during the same period in 2011. The PSE study covered financial statements of 229 out of 252 listed companies. 

"Corporate earnings continue to be strong in 2012. The growth in nearly all sectors has also demonstrated the strength of the Philippine economy which, barring any negative circumstances, should continue to support expansion next year," PSE President and Chief Executive Officer Hans B. Sicat said, in a statement. 

Consolidated revenues of listed companies jumped 20.1% to P3.29 trillion during the 9-month period from P2.74 trillion in the first nine months of 2011.

The PSE noted that 5 out of 6 sectors reported growth in net income in the first 9 months of 2012, as well as higher revenues. 

The industrial sector showed the strongest growth in profits and revenues. The consolidated income of the industrial sector surged 52.1% in 9 months, as companies reported gains on the sale of interests in subsidiaries and increased equity in net earnings of associates.

The financials sector saw a 26.6% jump in net income on the back of securities trading gains. 

Holding firms also reported a 22.7% rise in combined profits, as subsidiaries and associates posted improved income contributions. 

The property sector's consolidated income increased by 16.1% due to higher real estate sales and improved rent revenues from newly opened malls.

Also, the services sector's combined income grew by 4.%%, benefiting from nonrecurring gains, and new store openings.

However, it was a bad year for the mining and oil sector. The combined income plunged 57.7%, due to lower nickel prices in the world and suspended mining operations. 

"We've seen positive income growth from listed firms for the last three quarters.  Companies have been positioning themselves to take advantage of the burgeoning economy, which should enable them to create more profits. The Exchange, for its part, continues to encourage companies in utilizing the market to raise capital and fund their expansionary activities," Sicat said. 

The PSE was one of the best performing stock markets in the world, ending 2012 with a full-year gain of 33%. The local bourse set record highs 38 times in 2012, the most ever in a single year.