Robinsons shelves $800-M IPO of retail group amid volatile mart

 Economy
Jun 282013
 
Robinsons shelves $800-M IPO of retail group amid volatile mart

MANILA, Philippines – The Gokongwei family’s Robinsons Retail Group is postponing its $800-million initial public offering (IPO), making it the second conglomerate to shelve plans of going public amid volatile market conditions. The country’s second largest retailer is waiting for the right timing for its IPO, intended to accelerate its expansion program, its top executive said. “I think you have to wait for the right timing,” said Lance Y. Gokongwei, president and chief operating officer of JG Summit Holdings Inc. “It’s more important that we have a successful IPO, so we’ll wait for the right time.” Robinsons Retail Group is a unit of property giant Robinsons Land Corp., whose parent firm is the Gokongweis’ investment holding firm JG Summit. After hitting its 31st all-time high this year at 7,392.20 on May 15, the benchmark Philippine Stock Exchange index has since slipped, ending at 6,465.28 yesterday. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 On June 13, the main index plunged 6.75 percent or 442.57 points to finish at 6,114.08, marking its deepest single-day drop since sinking by a record 12.27 percent on Oct. 27, 2008 at the height of the Lehman Brothers’ bankruptcy that resulted in the global financial crisis. Gokongwei said Robinsons Retail Group has filed an IPO registration with the Securities and Exchange Commission for the share sale, which was previously targeted late this year. Robinsons Retail Group is planning to sell around 35 percent of the company’s stocks to the public, Gokongwei said. The retail group Read More …

Arthaland sees Arya Residences sustaining strong profit growth

 Economy
Jun 282013
 
Arthaland sees Arya Residences sustaining strong profit growth

MANILA, Philippines – Upscale developer Arthaland Corp. expects robust sales of its flagship project Arya Residences to continue to drive profit growth this year. Looking forward, the firm will venture into new projects in Metro Manila to arrest a possible sales slowdown next year, the company top official said. The first tower of the P4.5-billion Arya Residences in Bonifacio Global City in Taguig is already 90 percent sold while takeup for the second tower is already at 50 percent, said Arthaland president and CEO Angela de Villa Lacson. Arthaland will complete the construction of the first tower late this year, allowing the company to recognize more revenues and income, she said. In the first quarter, profits of Arthaland surged more than 2,000 percent to P105.34 million from P4.91 million a year ago given the higher recognized revenues. For the entire year, Lacson said net income “will certainly follow the trend [in the first quarter] given the strong take-up of projects.” Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Turnover of the first tower will start in the first quarter next year while the 43-story second tower will be delivered to buyers in the first quarter of 2016. Tower 1 is composed of 301 units while Tower 2 offers 261 units. However, the property firm expects revenues to ease starting next year as Arya Residences is already close to being sold out. Lacson said Arthaland is planning at least two projects in Metro Manila. In 2011, CPG Holdings Inc., the Read More …

Jollibee banks on Pinoys’ higher spending power

 Economy
Jun 282013
 
Jollibee banks on Pinoys’ higher spending power

MANILA, Philippines – Fastfood giant Jollibee Foods Corp. (JFC) is banking on Filipinos’ higher spending power, new branches and product launches to grow its profits further this year. The Philippines’ largest quickservice restaurant chain also expects better profitability in its operations in China, top company executives said yesterday. “There are two [growth] drivers: one is better products and the other one is election spending,” JFC chief finance officer Ysmael V. Baysa told reporters after the company’s annual stockholders’ meeting. Baysa said the effects of the election spending will taper off in the second half but JFC plans to introduce new products and improve its lineup. The current weakness of the peso is also seen to benefit the Philippine operations of JFC. “From different angles, it can be good [because] the OFW family’s income will be a little bit higher,” said JFC chairman and CEO Tony Tan Caktiong. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 For the entire year, JFC expects earnings per share to grow 12 percent. This will require at least a five-percent uptick in samestore sales, Baysa said. In the first three months, JFC’s net income grew 29 percent to P881 million from P682 million a year ago due to higher samestore sales and new branches. Systemwide sales, a measure of all sales to customers both in company-owned and franchised stores, picked up 10.6 percent to P23.83 billion in the first quarter. For its expansion plans, the fastfood giant is sticking to its plan of spending Read More …

Manila Water spends P346M for sewer network

 Economy
Jun 282013
 
Manila Water spends P346M for sewer network

MANILA, Philippines – East zone concessionaire Manila Water Company is shelling out P346 million for a 3.2-kilometer sewer network to benefit about half a million residents in San Mateo, Rizal and Marikina City. Manila Water Strategic Asset Management Group Director Abelardo Basilio said the project, treating sewage flows from portions of San Mateo and Marikina, is set to be finished within a year. “The first segment of Marikina North sewer network is set to bring forth the first flows of sewage that will be treated at the 100 million liters per day Sewage Treatment Plant being constructed at Marikina City,” Basilio said. Currently, Manila Water operates 37 sewage treatment facilities and two septage treatment plants with a total wastewater treatment capacity of 500 million liters per day. The company has also so far installed 109,717 sewer connections serving 158,242 households in the East zone. Manila Water said it plans to expand its sewerage service coverage, with Basilio adding that before 1997, there were only 3 percent sanitation coverage in the East zone. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The Ayala-led company provides water utility services to  6.2 million residents in Quezon City, Manila, Marikina, Pasig, San Juan, Mandaluyong, Pateros, Makati, Taguig and several towns in Rizal.

Public service

 Economy
Jun 272013
 
Public service

Having just returned from an extended trip abroad, I am shocked at the headlines regarding Department of Labor personnel accused of “sex for fly”.  Even assuming they are guilty, I hasten to confirm that those instances are the exception rather than the rule. It may not be as newsworthy but there are individuals who have served the nation with dignity and commitment to excellence which greatly outnumber the sorry lot that give public service a bad name. I would like to cite two examples of individuals who have made immense contribution to our national interest and yet have managed to keep under the radar despite their very senior positions in government and the private sector. Tomas I. Alcantara He cannot be categorized as a career public servant although he continued to serve the public interest long after his brief stint in government. Tommy belongs to a prosperous Davao family.  He graduated from Ateneo de Manila, went to Harvard for his MBA and then to Columbia for an Advanced Management Program. He then went into private business as was expected of him.  In 1986, he was invited to join the government of President Cory Aquino as undersecretary of Trade and Industry, a position he occupied for nine years.  I first met him in 1992 when I was in DFA.  He impressed me as a driven individual, politely aggressive but fiercely stubborn if prevented from getting the job done.  During my first trip to Japan, he volunteered to join my delegation.  It Read More …

Phl needs $600-M investment for energy efficiency, says ADB

 Economy
Jun 272013
 
Phl needs $600-M investment for energy efficiency, says ADB

MANILA, Philippines – The Asian Development Bank (ADB) is eyeing to accelerate investments in end-user energy efficiency to help Asia Pacific economies meet the growing demand for power. At the 8th Asia Clean Energy Forum organized by the ADB, Bindu Lohani, ADB vice-president for knowledge management and sustainable development, said the Philippines needs $601 million in investments for energy efficiency from now up to 2020. He said there is huge potential for saving energy by making buildings, vehicles, machinery and water pumps more energy efficient to the benefit of consumers and the environment, and the time is right for ADB to do more in the area. “We want to promote demand-side energy efficiency through public and private sector partnership with ADB taking a lead role in providing customized policy advisory services, technical assistance and innovate financing support in developing member countries,” Lohani said. In a new ADB study, the multilateral lender noted the booming demand for power in developing Asia. In the study, the ADB said the region’s share in primary global energy consumption is set to rise to 56 percent in 2035 from only 34 percent in 2010. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 By then, the ADB said most Asian countries will produce less than half of the energy they need, forcing substantial fuel imports. The ADB study said if governments push for more energy efficiency investments, there would be less need to build power plants. This would free up government funds for spending elsewhere. Read More …

Stocks extend rally as global markets recover

 Economy
Jun 272013
 
Stocks extend rally as global markets recover

MANILA, Philippines – Hefty recoveries in global and regional markets spread to the local bourse yesterday, allowing the main index to rally for the second straight day en route to returning to the 6,300 level. The Philippine Stock Exchange index climbed 3.42 percent or 209.06 points to end at 6,328, while the broader All Shares index jumped 3.14 percent or 117.94 points to 3,877.61. Justino Calaycay Jr., an analyst at Accord Capital Equities Corp., said investors kept an eye on overseas development amid lack of market-moving news locally. “With share prices in Europe posting decent gains and US stocks extending a triple-digit advance to day two, local counters joined its regional peers in the green,” Calaycay said. On Wednesday, Wall St. rose for the second straight day on the back of a downward adjustment in US first quarter economic growth, which might prompt the Federal Reserve to keep its stimulus program longer. The Dow Jones industrial average picked up one percent or 149.83 points to 14,910.14 while the broader Standard & Poor’s 500 index gained one percent or 15.23 points to 1,603.26. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In regional markets, Japan’s Nikkei 225 added 2.96 percent or 379.54 points to 13,213.55 while Hong Kong’s Hang Seng index inched up 0.52 percent or 104.80 points to 20,443.35 on easing worries over the credit crunch in China. Locally, all counters were in positive territory, led by holding firms that rallied 4.15 percent or 225.81 points to 5,669.50.

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