Mexico to trump Japan as No. 2 car exporter to US

 Economy
Feb 212014
 
Mexico to trump Japan as No. 2 car exporter to US

Volkswagen Jettas produced in Mexico for export are parked at the port terminal in the Gulf city of Veracruz, Mexico. (AP Photo/Felix Marquez) CELAYA, Mexico — Mexico is on track to become the United States’ No. 1 source of imported cars by the end of next year, overtaking Japan and Canada in a manufacturing boom that’s turning the auto industry into a bigger source of dollars than money sent home by migrants. The boom is raising hopes that Mexico can create enough new jobs to pull millions out of poverty as northbound migration slows sharply, but critics caution that most of the new car jobs are low-skill and pay too little. Mexico’s low and stagnant wages have helped kept the poverty rate between 40 and 50 percent since the passage of the North American Free Trade Agreement two decades ago. An $800 million Honda plant that opened Friday in the central state of Guanajuato will produce more than 200,000 Fit hatchbacks and compact sport-utility vehicles a year, helping push total Mexican car exports to the U.S. to 1.7 million in 2014, roughly 200,000 more than Japan, consulting firm IHS Automotive says. And with another big plant starting next week, Mexico is expected to surpass Canada for the top spot by the end of 2015. “It’s a safe bet,” said Eduardo Solis, president of the Mexican Automotive Industry Association. “Mexico is now one of the major global players in car manufacturing.” When NAFTA was signed two decades ago, Mexico produced 6 Read More …

House body okays VAT exemption for PWDs

 Economy
Feb 212014
 
House body okays VAT exemption for PWDs

MANILA, Philippines – The House committee on ways and means has approved in principle House Bill 1039, which seeks to exempt persons with disability (PWD) from the value added tax (VAT) on certain goods and services. Marikina City Rep. Romero Quimbo said the panel agreed to refer the bill —authored by Leyte Rep. Ferdinand Martin Romualdez — to a technical working group (TWG) to fine tune it and reconcile the minor disagreements on the implementation aspect.  “Essentially there has been a consensus already to give it (VAT exemption). We will just have to refer to the TWG for purposes of fine tuning and reconciling the minor disagreements on the implementation as to how and who will define a PWD,” Quimbo said, The lawmaker said the committee still needs clarification from Department of Health (DOH) for assurance that any VAT exemption given to PWDs will not be abused. As to the revenue loss issue being raised by those opposing the bill, he said such is miniscule relative to the social impact of the proposal.  “The bigger picture here really is PWDs today, while nobody wants to admit it, a great majority of them are burdens. So they are economic burdens because they are not productive, they’re not doing anything that adds to the economy because of the lack of opportunities as well as to the stigma,” he said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 He said what the bill aims to do is try to bring PWDs into Read More …

Holcim breaches P4-B profit mark in 2013

 Economy
Feb 202014
 
Holcim breaches P4-B profit mark in 2013

MANILA, Philippines – Robust sales and improvement in operating efficiencies allowed cement maker Holcim Philippines Inc. to breach the P4-billion income mark last year. In a disclosure to the stock exchange, Holcim Philippines said its net income jumped 26 percent to a record P4.55 billion last year from P3.62 billion in 2012 on the back of strong demand and good cost management. The cement manufacturer expects further demand growth this year even as it has postponed its plan to invest $550 million for a new factory in Bulacan pending studies on the synergy with other Holcim offices in Southeast Asia, a company official said. “Our company benefited from the good business environment, which has allowed the construction boom to persist and cement demand to thrive,” said Holcim Philippines CEO Eduardo A. Sahagun. Revenues rose six percent to P28.89 billion from P27.15 billion. The firm said its revenues improved last year, buoyed by good price management and steady volumes on the continued growth of cement demand. “The market was made robust by the government’s heavy investments on infrastructure and the private sector’s commercial, residential and industrial projects,” Holcim Philippines said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In anticipation of continued demand growth this year, Sahagun said the company finished major projects in 2013 such as the capacity upgrades for its La Union and Misamis Oriental plants and the reactivation of its idle grinding facility in Batangas. “Strong cement demand seen on continued construction, with the industry recognized as Read More …

Globe sees better 2014 amid lower write-downs

 Economy
Feb 202014
 
Globe sees better 2014 amid lower write-downs

MANILA, Philippines – Ayala-led Globe Telecom Inc. is looking at better earnings this year as the amount of one-time write-downs arising from its $790-million network and information technology modernization and transformation program is expected to be completed in the first quarter of the year. Ernest Cu, president and chief executive officer of Globe, said in an interview with reporters that the accelerated depreciation arising from its transformation program is expected to be completed within the first quarter of the year.  “There will some more left because I believe we still have in the first quarter some things to write off… The strength in the core business remains. It has been that way over the past three years and we expect it to continue that way,” Cu said. The company’s net income plunged 28 percent to P4.96 billion last year from P6.85 billion as accelerated depreciation charges related to assets affected by the modernization program jumped 78 percent to P9.06 billion resulting in a 17-percent rise in depreciation charges to P27.48 billion. However, Cu said the focus should be on the core income that measures the underlying financial performance of a company. Business ( Article MRec ), pagematch: 1, sectionmatch: 1  “The core net income of the company shows you the underlying performance is outside of these one time extra ordinary events of transformation. Transformation means we took away the old equipment, we threw them out or sold them at salvage value and we have to write them down. But it Read More …

Alphaland eyes add’l cash via loans, share sale

 Economy
Feb 202014
 
Alphaland eyes add’l cash via loans, share sale

MANILA, Philippines – Upscale property developer Alphaland Corp. is planning to raise additional cash through loans and share sales. Proceeds from the equity offering, which will also increase its public float, will bankroll the construction of two new developments, the firm said yesterday. “In order to rectify the public ownership deficiency of the company due to the Ashmore Group misrepresentation, the board of directors authorized the management to make such number of private placements through the issuance of shares to non-related and qualified entities,” Alphaland said in a disclosure to the stock exchange. Management was authorized to sell shares at a minimum price of P2.50 each. Alphaland, whose shares were suspended from trading since Jan. 20, currently has a public float of 5.07 percent. “The board of directors also authorized management to secure sufficient funding, both through borrowings and equity placements either through private placements or public offerings,” Alphaland said. Fresh capital will augment the funding for projects including the P2-billion Alphaland Marina & Country Club and residential towers, and the Alphaland Baguio Mountain Log Homes. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Early this month, Alphaland completed a P270-million share sale exclusively for minority shareholders. Alphaland earlier said the stock rights offering will give minority shareholders a chance not to be diluted following a billion-peso capital infusion from large stakeholders early in January. Due to time constraints, the previous capital call was made only to owners of more than 10 percent via a private placement. The transaction Read More …

Nasdaq opens Manila support office

 Economy
Feb 192014
 
Nasdaq opens Manila support office

The Nasdaq Video Wall facing Times Square in New York City. Nasdaq photo MANILA, Philippines — Nasdaq has opened a customer service center in the Philippines in a coup for the country’s rapidly growing outsourcing industry. The operator of the namesake U.S. stock exchange says Wednesday the office will be part of its efforts to provide 24-hour support services for its corporate clients. It says the Manila office has 170 staff. Aside from its stock and futures markets in the U.S., the company has exchanges in Europe as well as stock index and trading technology businesses. For foreign companies, the Philippines has become the go to country in Southeast Asia for call centers and outsourcing of back office business functions. India’s outsourcing industry is also thriving as multinational companies seek to lower costs by basing some functions in countries with lower wages. Business ( Article MRec ), pagematch: 1, sectionmatch: 1

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