GT Capital earnings reach P7.1 billion in H1

MANILA, Philippines — GT Capital Holdings Inc. reported a net income of P7.1 billion in the first half compared with P7.2 billion the previous year, reflecting the slowdown in the auto industry’s unit sales.

The company registered consolidated revenues of P101.2 billion, up 6.9 percent year-on-year.

In a briefing yesterday, GT Capital president Carmelo Maria Luza Bautista said the company still expects to post a mid-single digit net income growth for the year despite the slowdown in the first half.

“The decline  is due 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,” he said.

GT Capital expects market demand to normalize by the fourth quarter and resume its growth momentum by 2019 due to Toyota Motor Philippines (TMP)’s new model launches and sufficient inventory.

Higher equity in net income of associates Metropolitan Bank & Trust Co. (Metrobank), AXA Philippines, Metro Pacific Investments Corp. and Toyota Financial Services (TFS) contributed to GT Capital’s financial performance.

Metrobank posted a P5.2 billion net income for the second quarter, up 31 percent.  This brings its first half net income to P11 billion or an increase of 16 percent year-on-year.

TMP, meanwhile, reported a 30 percent decline in net income to P4.5 billion. Consolidated revenues amounted to P76.4 billion.  It sold 734,136 vehicles during the first semester.

It continues to be the leader in passenger car, commercial vehicle, and overall sales, with a total market share of 38 percent.

“Strong sales from the Wigo and Hilux models, as well as the brand-new Rush contributed to Toyota’s revenues. TMP introduced the Rush entry sport utility vehicle (SUV) in May, marking the company’s first foray in this segment,” Bautista said.

Property firms Federal Land Inc. and Property Company of Friends Inc., meanwhile,  reported a combined net income of P1.1 billion on P9.7 billion in revenues.

AXA Philippines’ net income likewise grew by a robust 35 percent to P1.3 billion.