Appliance maker CIC profit surges 36% in Jan-Sept

November 11, 2014 5:37 am 

MANILA, Nov. 10 — Listed appliance maker Concepcion Industrial Corp. (CIC)

POSTED A 36-PERCENT GROWTH IN PROFIT IN THE FIRST NINE MONTHS OF 2014, DRIVEN MAINLY BY HIGHER GROWTH IN SALES.

IN A DISCLOSURE TO THE PHILIPPINE STOCK EXCHANGE, CIC SAID ITS NET INCOME REACHED PHP495 MILLION IN JANUARY TO SEPTEMBER FROM PHP392.86 MILLION DURING THE SAME PERIOD LAST YEAR.

ITS SALES JUMPED 26 PERCENT TO PHP6.9 BILLION FROM PHP5.6 BILLION.

“FAVORABLE ECONOMIC FUNDAMENTALS POSITIVELY BOOSTED THE COMPANY’S PERFORMANCE WITH A FEW CHALLENGES IN THIRD QUARTER BROUGHT ABOUT BY THE PESO DEPRECIATION AND RISING LOGISTIC COSTS WHICH HAS AFFECTED INDUSTRIES ACROSS THE BOARD,” IT SAID.

CIC ATTRIBUTED THE ROBUST NINE-MONTH PROFIT TO STRONG GROWTH IN AIR CONDITIONING SALES WITH INCREASING POPULARITY OF INVERTER TECHNOLOGY, CONTINUED EXPANSION IN COMMERCIAL PROJECTS AND INCREASED PROFITABILITY OF THE DOMESTIC REFRIGERATION BUSINESS AS COST REDUCTIONS AND INVESTMENTS IN HIGH-MARGIN PRODUCTS HAVE GAINED TRACTION.

“THE LATEST ACQUISITION, CONCEPCION OTIS PHILIPPINES INC., WAS FULLY INTEGRATED STARTING SECOND QUARTER 2014 WHICH ALSO HELPED BOOST THE COMPANY’S EARNINGS FOR THE PERIOD,” IT ALSO SAID.

CIC CHIEF EXECUTIVE OFFICER AND CHAIRMAN RAUL JOSEPH CONCEPCION SAID THE COMPANY REMAINED FOCUSED ON ITS GOAL OF STRENGTHENING THE CORE BUSINESSES WHILE EXPANDING INTO NEW MARKETS AND CUSTOMER SEGMENTS.

“WE NEED TO ENSURE THAT AS WE BROADEN PROFITABILITY THROUGH EXPANSION AND SYNERGIES, WE DO NOT LOSE SIGHT OF OUR NEED TO INVEST IN COMPANY PROCESSES, PEOPLE AND LEADERSHIP TO SECURE OUR CORNERSTONES IN ACHIEVING OUR GOALS AND LONG-TERM TARGETS FOR 2015 AND BEYOND,” HE SAID. RMA/LDV

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