04/20/2010 [ tribune.net.ph ]
Ayala Corp. said it is maintaining a positive outlook for the year to back up a P70 billion capital expenditure (capex) allocation to “expand into new markets and geographies,” Ayala Corp. chairman Jaime Augusto Zobel de Ayala said.
“We are optimistic about this year as the economy continues to show positive signs of recovery. Ayala continues to explore new investment opportunities and platforms to enhance value creation of our shareholders,” Ayala added.
The 2010 capex, which is 30 percent higher than the previous year was also the highest on record for the conglomerate.
Ayala said it signalled the opening of new opportunities for the corporation and will be used to address the needs of a broader consumer base — real estate, telecommunications and water utilities sectors.
“We are increasingly aligning our business models across the group to be responsive and relevant to our commitment to provide sustainable growth and development to a broader and more diverse community,” Ayala said in a statement.
This, despite a P2.8 billion or a four percent decrease in total revenue from 2008’s P79.1 billion profits to last year’s P76.3 billion, Ayala said.
He added 2009 was a pretty good year for Ayala Corp.
In his report to shareholders, Ayala disclosed that most of the groups’ units performed well in 2009 despite a severe slowdown in the global economy, resulting in the firm’s earnings rising by 34 percent in 2009 from a year ago.
He attributed this to the aggressive expansion program of Ayala Land Inc. (ALI), meeting the growing demand for housing at much lower price points; the growth in the banking sector (Bank of the Philippine Islands) supported by the corporation’s business activities in the consumer and middle markets; and the expansion of telecommunication broadband business and Globe Telecom’s endeavor to build up is position in the mobile wireless market.
ALI will continue to expand its venture in the economic housing segment locally, providing low to mid-end housing in partnership with Manila Water Co. Inc., for the development of water utilities in existing and future real estate developments. Real estate developments in Macau are also part of the group’s focus, he said.
Ayala will also pursue expansion overseas through Manila Water, Integrated Microelectronics Inc. (IMI) and LiveIt Investment Ltd. in the business process outsourcing (BPO) sector. Manila Water is looking at water and wastewater projects in Vietnam and India.
IMI recently opened its sixth manufacturing facility in China with 8,000 employees. It has manufacturing plants in Shinzen, Guangdong Province, South of Shanghai and Szechuan. In Japan, it has relocated its office in Tokyo to Nagoya to increase business by and large.
Its BPO unit continues to participate in acquisition opportunities as the industry continues to consolidate globally. Danessa Rivera
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