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Holding firm’s net income increases on property sales

Posted on April 08, 2013 10:10:19 PM [ BusinessWorld Online ]

REPUBLIC GLASS Holdings Corp. grew its net income by nearly threefold last year on the back of one-time gains from property sales, the holding firm said in a disclosure yesterday.

Republic Glass posted a net income of P223.32 million last year, up 182.93% from P78.93 million in 2011, even as revenues -- consisting of investment, rental, and dividend income -- were barely changed at P68.46 million from P69.09 million, according to audited financial statements attached to an information statement on its upcoming annual stockholders’ meeting. Gain from the sale of investment properties, however, doubled to P159.91 million from P79.80 million.

Republic Glass has been disposing of investment properties, described as “mainly of parcels of land, other real estate properties and furniture and fixtures, which are being held by the company for capital appreciation and rent.”

In April last year, the company completed the sale of a 191,905-square-meter vacant lot in Batangas to infrastructure firm Atlantic, Gulf, and Pacific Company of Manila, Inc. for P347 million, and in November sold a two-hectare property in Libis, Quezon City to Gokongwei-led Robinsons Land Corp.

In the same periods, Republic Glass’ general and administrative expenses fell by 4.5% to P31.42 million from P32.90 million.

Geronimo F. Velasco, Jr., Republic Glass president and vice-chairman, had said in April last year that one-time gains were expected to boost the company’s bottom line in 2012 following a 70.37% drop to P78.930 million in 2011 from P266.406 million in 2010.

Meanwhile, Republic Glass said it is upbeat on its outlook this year on the back of a generally robust economy, coupled with election-linked spending.

“Prospects for 2013 remain positive as the Philippine economy is expecting… growth of 6-7%, with other analyst and financial institutions forecasting a rise of 5-6.2% on the back of reforms and much-improved fiscal performance. The 2013 midterm election shall also give the economy an added boost as it will ‘pump-prime’ the economy with the increased expenditures,” Republic Glass said in its disclosure.

“Under this economic scenario, the company remains confident that its present investments will continue to perform creditably in 2013,” it added.

“We will continue to scout for opportunities for growth and diversification, and divest idle assets and reinvest the proceeds in more profitable ventures. We will aggressively seek and evaluate many other investment prospects in order to expand our revenues and earnings base,” the company said further, without elaborating.

Republic Glass was incorporated in 1956 as Republic Glass Corp., a manufacturer of flat glass. It spun off its glass operations in 1990 to form Republic-Asahi Glass Corp. in a joint venture with Japan-based Asahi Glass Co. Ltd. Since 2001, Republic Glass has been engaged primarily in investments and holding activities, namely: the purchase and sale of government and corporate investment-grade bonds and money market placements. Last February, Republic Glass said it had inked a deal with Science Park of the Philippines, Inc. for “investment purposes,” giving the former an estimated 9% stake and a board seat in the economic zone developer for P278 million. -- F. J. G. de la Fuente
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