CONCEPCION Industrial Corp., maker of refrigerators and air-conditioning, said it saw a recovery of its proifts during the second quarter and expects to report higher sales and earnings after a weaker performance during the first quarter.
Company Chairman Raul Joseph A. Concepcion said preliminary indications for their second-quarter 2018 results showed a 14-percent and 12-percent growth in sales and attributable net income, respectively.
That rate placed its second-quarter 2018 net sales at about P4.67 billion, while profits rose to about P395 million.
For the second quarter last year, Concepcion Industrial reported a 4-percent improvement in net sales to P4.1 billion, while net earnings rose 2 percent to P353 million.
Concepcion said this is a recovery from the previous quarter’s performance when the firm reported a 20-percent fall in consolidated net income to P270 million, while attributable earnings amounted to P164 million on the back of sales amounting to P3.1 billion.
“The start of 2018 was challenging for the company as expected. The continued rising commodity prices and lower FX rates combined with our transition to a new ERP [enterprise resource planning] system impacted our results adversely,” Concepcion said.
He said the company will see recovery beginning the second quarter as the markets continue to be strong “and as we begin to feel the impact of actions taken to address cost increases.”
Concepcion said strength was seen in both consumer and commercial air-conditioning markets in the three months ending June 2018.
“CIC’s performance reflects strong demand brought about by consistently strong economic fundamentals, rising income levels and strong private-sector confidence in the economy,” he said.
The firm has set its sights on growing the core, extending the core and expanding beyond the core, but so far, with little results.
In 2017 the company started to look toward different horizons including new ventures complementing the business, potentially disrupting their already efficient processes.
It created a unit called Cortex, to incubate new technology and initiatives in developing new products and solutions for their clients and their own businesses.