Vol. XXII, No. 78 [ BusinessWorld Online ]
Wednesday, November 12, 2008 | MANILA, PHILIPPINES
THE ONGOING financial crisis in the US and Europe and the global economic slow-down has failed to dampen the spirit of property companies, which remained confident about hitting their yearend profit targets.
Sy-led SM Development Corp.’s (SMDC) third-quarter net income stood at P12.5 million, a turnaround from a net loss of P341 million a year earlier. This brought its nine-month profits to P642 million, five times higher than last year, as sales from January to September more than doubled to P2.9 billion.
In a statement, the firm traced the profit hike to sales from Mezza Residences and Chateau Elysee. The SM group’s property arm said it had sold 2,037 residential units worth P3.7 billion during the nine-month period, an increase of more than two-thirds from a year earlier.
SMDC President Roger R. Cabuñag cited sustained demand for their residential projects. "We are, however, closely monitoring the developments amid the turbulent external environment to enable us to make the necessary adjustments," he added. SMDC earlier projected a P6-billion increase in sales this year from P3.5 billion last year, saying it was confident of hitting the target amid the slowdown.
Meanwhile, sister SM Prime Holdings, Inc. said net profits in July to September went up by almost a tenth to P1.6 billion, bringing the nine-month figure to P4.7 billion. The country’s largest shopping mall developer traced the profit hike to higher rental fees, as well as the operations of its three malls in China, which it had acquired last year. "We feel fortunate that Asia appears to be in a much better position to weather the global financial turmoil," SM Prime President Hans T. Sy said in a statement.
Also yesterday, Megaworld Corp. said it was on track to meet its full-year net profit target of P3.8 billion, almost four times higher than a year earlier. Its third-quarter net income rose by more than a quarter to P1.07 billion, the second time in its history to breach the P1-billion mark. This brought nine-month profits to P2.86 billion. "We are well positioned to sustain the growth of our business as our projects continue to enjoy strong interest," Megaworld Chairman Andrew Tan said. — Kristine Jane R. Liu
