DMCI pushing ‘recovery efforts’ after first-half fall
Engineering and construction conglomerate, DMCI Holdings Inc., has vowed to implement “recovery efforts” specifically for its newly acquired cement business, which was among the reasons behind its weak performance in the first semester.
In a stock exchange filing on Wednesday, DMCI chair and CEO Isidro Consunji said transition and integration of Concreat Holdings Philippines into its businesses would “take time.”
“But our diverse business mix and engineering ecosystem continue to support the group,” Consunji added. “We believe that the improvements we are making today will lead to meaningful value for our stakeholders in the long run.”
This, after DMCI’s net income in the first six months of the year dropped by 18 percent to P9.1 billion due to Concreat’s integration and weak real estate, coal and construction.
In the second quarter alone, earnings slid by 27 percent to P4 billion.
Concreat reported a net loss of P682 million during the quarter, mainly due to higher interest expense and softer revenues.
DMCI noted recovery efforts were underway, “with improvements aimed at enhancing sales and reducing costs through operating efficiencies and distribution network optimization.”
Semirara Mining and Power Corp. contributed P2.3 billion to overall earnings, down 32 percent as soft energy market conditions resulted in low selling prices.
Meanwhile, DMCI Homes saw an 8-percent decline to P678 million because of higher operating and finance costs. Higher revenue recognition from newly qualified accounts tempered a steeper decline, DMCI said.
Maynilad Water Services Inc., in which the Consunji family holds a 27.19-percent interest, saw its bottom line surge by 33 percent to P973 million on higher average effective tariff.
DMCI Power, its off-grid energy unit, grew profits by 5 percent to P374 million due to higher energy sales and new capacities in Palawan and Antique provinces.
DMCI Mining swung to a P344-million net income from a P43-million net loss as selling prices and operational performance improved.
