Cooling Solutions provider Concepcion Industrial Corp. (CIC) plans to spend half a billion pesos this year, partly to expand its plant in Laguna, a senior company official said last week.
"Around P500 million... for plant expansion and for the many projects that we have for this year, which are mostly in manufacturing," CIC chairman emeritus Raid T. Concepcion said on the sidelines of a Makati Business Club and European Chamber of Commerce of the Philippines joint meeting last Friday in Makati City, when asked for the company's capital expenditures (capex) this year.
This year's capex, which Mr. Concepcion said was "about 70% higher compared to last year's," will be sourced internally. CIC Chief Executive Officer Raul Joseph A. Concepcion said after the Investment ASEAN 2014 Conference in Singapore early this month that he expects even stronger profit growth this year with the acquisition of stakes in two companies.
"Moving forward to 2014, we expect that... the new acquisitions we have... will definitely drive our profits and revenues," the official said then.
"Of course, the core business will also grow but the addition of new acquisitions will provide exciting growth in the second half of 2014," Mr. Concepcion added.
Last month, CIC acquired 51% of Otis E&M Company Philippines, Inc., a provider of elevators and escalators in the country.
The company also owns 52% of Concepcion Midea, Inc., a joint venture with Midea Electric Trading (Singapore) Co. Pte. Ltd. That was formed in November last year. CIC, which made its debut at the Philippine bourse in November last year, saw its profit grow by more than a fifth last year on the back of higher sales and lower costs, the company said in a statement attached to a disclosure, citing audited financial results.
Its net income after tax grew 22.81% to P840.558 million last year from P684.438 million in 2012, while net income attributable to controlling shareholders climbed 19.82% to P510.586 million from P426.135 million.
It cited as drivers a 9.3% annual net sales growth to P7.59 billion from P6.94 billion, as well as "improved margin in the air conditioning business and cost reduction focus in refrigeration."
Consumer sales were driven by both first-time buyers and the replacement market, as well as expansion in orders from commercial and institutional customers.
Operating expenses eased 3.3% to P1.266 billion from P1.309 billion.
CIC and its subsidiaries — Concepcion-Carrier Air Conditioning Company and Concepcion Durables, Inc. — are primarily engaged in the manufacture, sales (except retail), distribution, installation and service of heating, ventilating and air-conditioning (HVAC) products and HVAC services, as well as manufacture, assembly, wholesale, retail, purchase and trade of refrigeration equipment. Among the brands under CIC include Carrier, Condura, Kelvinator, and Toshiba.
Its manufacturing plant is located in the Light Industry and Science Park in Cabuyao, Laguna.
CIC shares shed 30 centavos or 0.87% to close P34.00 apiece on Friday last week from P34.30 each on Thursday.
Source: Business World, 28 April 2014
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