GT Capital Holdings Inc., the holding firm of tycoon George Ty, on Wednesday said its income fell 1 percent to P7.1 billion during the first half of the year from last year’s P7.23 billion on weaker auto sales during the second quarter.
Revenues for the six-month period came in at P101.16 billion, 6 percent lower than the previous year’s P108.17 billion.
“As anticipated, our first-half results reflect the slowdown in the auto industry’s unit sales. This is attributed to the front-loading of orders late last year in anticipation of the TRAIN law and the run-out of the previous generation Vios during the second quarter,” GT Capital President Carmelo Maria Luza Bautista said.
TRAIN stands for the Tax Reform for Acceleration and Inclusion, the first tax-reform package of the Duterte administration.
“We are expecting market demand may normalize by the fourth quarter and resume its growth momentum by 2019 due to Toyota Motor Philippines’s new model launches and sufficient inventory. Our affiliates Metrobank, AXA Philippines, Metro Pacific and TFS [Toyota Financial Services] delivered strong results, mitigating the soft numbers from the auto sector,” he said.
Earnings for the second quarter alone fell 17 percent to P3.4 billion from last year’s P4.1 billion. Revenues for the period declined 6 percent to P55.71 billion, from last year’s P59.42 billion.
Lender Metropolitan Bank and Trust Co. posted P5.2 billion in net income for the second quarter of 2018, growing by 31 percent from P3.9 billion in the same period last year, bringing net income for the first half of the year to P11 billion, or an increase of 16 percent year-on-year.
Toyota Philippines had consolidated revenues of P76.4 billion in January to June this year, down by 7 percent from last year’s P82.1 billion.
It booked a profit of P4.6 billion, a 28-percent decline from last year’s P6.4 billion in consolidated net income. Toyota posted retail sales of 73,136 vehicles during the first half of 2018, down from last year’s 85,728 vehicles.
It still has a total market share of 38 percent, slightly down from last year’s 39 percent.
Strong sales from the Wigo and Hilux models, as well as the brand-new Rush, contributed to Toyota’s revenues, the company said. It introduced the Rush entry sport-utility vehicle (SUV) in May, marking the company’s first foray in this segment.
Property developers Federal Land Inc. and Property Company of Friends Inc. reported a combined P9.7 billion in consolidated revenues from January to June 2018, a 27-percent increase from last year’s P7.6 billion. Together, the two property developers reported a net income amounting to P1.1 billion for the period, down from last year’s P1.5 billion.
Axa Philippines Corp.’s net income grew 35 percent to P1.3 billion for the period from P1 billion last year. Sales in annualized premium equivalent for the life-insurance business grew 27 percent to P3.8 billion, from P3 billion in the same period last year. Regular premium income increased 25 percent year-on-year, while single premium income rose 58 percent, the company said.