Monday, July 28, 2008 [ philstar.com ]
Amid tough business conditions marked by high construction costs and fuel prices, property giant Ayala Land Inc. (ALI) said it expects its net earnings in the second quarter this year to rise at about the same level as the first quarter’s growth of 42 percent, mainly driven by the continued strong demand for its products.
“We reported a net income growth of 42 percent in the first quarter. For the second quarter, we are looking at tracking a similar range. I think that the trajectory we showed in the first quarter will continue,” said ALI president Jaime Ayala.
Revenues are likewise seen to grow double-digit this year, banking on the company’s residential, office and mall projects.
Ayala, however, said the company is cautiously monitoring local developments, particularly on inflation which he said could affect the firm’s business.
Despite of the prevailing economic slowdown worldwide, ALI remains bullish on the property sector given its string of new projects.
ALI has earmarked P24.3 billion for its capital expenditures this year, 60 percent higher than in 2007. Bulk of the allotted money will go to the development of 5,600 new residential units from new projects and additional phases in existing projects.
About 30 percent will be channeled to the expansion of its business process outsourcing space, significantly higher than the 12 percent a year earlier. The balance will be used to fund the redevelopment of the Ayala Center and Greenbelt, and beef up its landbanking activities with focus on acquiring key sites in the Mega Manila area and other geographies with attractive and fast-growing economies.