MacroAsia profit down 9.5% on lower revenues

Lower revenues from its in-flight catering business pulled down the net income of MacroAsia Corp. by 9.48 percent in the first semester this year, reflecting the impact of soaring fuel prices.

MacroAsia is an aviation-related services company owned by taipan Lucio Tan.

Based on its financial report submitted to the Philippine Stock Exchange, MacroAsia said its net earnings declined to P137.4 million from P151.8 million a year earlier as service revenues dropped 5.18 percent to P503.77 million.

“The decrease is attributable mainly to lower revenues from the group’s catering business due to lower meal volume and the appreciation of the Philippine peso,” MacroAsia said.

Despite stiff competition, revenues from ground handling services increased 31 percent year-on-year to P21.8 million as more airline clients were serviced.

MacroAsia said its share in the net income of its associates rose 21 percent due to the increase in revenues of Lufthansa Technik Philippines Inc. (LTP), mainly coming from aircraft overhaul services to foreign airline customers.

LTP, a joint venture between MacroAsia and Lufthansa Technik AG of Germany, is the only company which provides a wide range of aircraft maintenance, repairs and overhaul (MRO) services at the Ninoy Aquino International Airport and the MCIA.

Revenue from rental and administrative fees remained at the same level because lease rental is being accounted for on a straight-line basis over the lease term, in compliance with Philippine Charter.

Direct costs went up 11 percent to P403.5 million while selling and general and administrative expenses increased 13 percent due largely to higher salaries and wages (propped up by the hiring of additional employees for mining activities), utilities, professional and legal fees, taxes and licenses and mining overhead expenses.

The group had some relief from foreign transactions this year as evidenced by P0.19 million foreign exchange gains as against last year’s P3.6 million foreign exchange losses. From P2.6 million in 2007, interest expense was up by P0.84 million (or 24 percent) due to higher loan balances and higher interest rates prevailing during the year. – Zinnia dela Peña