MacroAsia Profits Slide In 3rd Quarter


LISTED aviation services provider MacroAsia Corp. (MAC) saw its third-quarter profit slip by 8.63% despite the growth of its catering business and ground handling associate.

In its financial report released on Friday, the Lucio Tan-led firm said its net income declined to P89.14 million from P97.56 million after other revenue fell 23.3% to P81.39 million.

Still, operating revenue improved 8.08% to P472.52 million.

Despite the latest figures, year to date profit more than doubled to P340.92 million from P136.3 billion.

This exceeded expectation of MacroAsia’s Chief Financial Officer Amador T. Sendin, who told stockholders in July that it will “more than double our net income in 2014”, which amounted to P121.91 million.

“The 150% growth in net income is driven by the increase in the net income of our MRO (aircraft maintenance, repairs and overhaul) associate, Lufthansa Technik Philippines, Inc., in which MAC’s share is 49%,” the firm explained in the report.

MacroAsia also cited the “continuing net income growth” in MacroAsia Catering Services and Cebu Pacific Catering Services.

“Our ground handling subsidiary has also exhibited growth in its operational results, supported by the intrinsic growth of its key local base clients,” the company explained, referring to Philippine Airlines, PAL Express, and Cebu Pacific.

From January to September, operating revenue inched up by 7.53% to P1.38 billion while other revenue more than doubled to P318.57 million.

“As a Group, we have not been immune to the challenges of our airline clients, especially some base clients and those from foreign countries that are also coping with difficulties arising from economic and security issues within their geographical regions,” MacroAsia said.

The firm’s services and products to these clients are “often subjected to cost pressures, as everybody is bent on cutting down or avoiding expenses in order to operate competitively.”

However, the company said its core business remains “resilient” for the rest of the year.

Source: http://www.bworldonline.com/
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