GT Capital sets aside P51.7 B capex for 2019
Iris Gonzales (The Philippine Star) - April 1, 2019 - 12:00am

MANILA, Philippines — GT Capital Holdings Inc., the George Ty-owned conglomerate, is setting aside P51.7 billion in group wide capital expenditures this year, less than half of the P110 billion allocated in 2018. 

In an interview, GT Capital executive vice president and chief financial officer Francisco Suarez Jr. said the 2018 group capex was significantly higher because there were bigger requirements such as the participation of its automotive arm Toyota Motor Philippines Corp. in the government’s Comprehensive Automotive Resurgence Strategy Program. 

For this year, of the P51.7 billion group capex, the parent company will get P27.8 billion for investments in auto value chain and other potential businesses. 

Property arm Federal Land Inc. will get P12 billion to be used for land banking and office buildings, while Toyota Motor Philippines will get P6.8 billion to bring in new models and support logistics expansion. 

Its other property unit Property Co. of Friends Inc. (Pro-Friends) will get P2.3 billion, of which the bulk of the amount or P1.9 billion would be used for land. 

Banking arm Metropolitan Bank & Trust Co. (Metrobank) will get P2 billion for IT system upgrades, expansion of electronic banking channels, ATM installations and other branch improvements. 

The balance would be divided among the rest of the businesses.

Suarez said the capex would be funded by internally-generated funds and debt.

The company reported a consolidated net income of P13.4 billion last year, down six percent from P14.2 billion in 2017. 

Core net income reached P13.7 billion compared to the P15 billion in the previous year. 

In terms of revenues, GT Capital achieved consolidated revenues of P215.8 billion last year, down 10 percent from P239.8 billion in 2017. 

GT Capital president Carmelo Maria Luza Bautista said the company was able to weather the challenges last year.

“GT Capital weathered strong headwinds in 2018 as soft vehicle unit sales were cushioned by noteworthy results in our financial services, property, and insurance businesses. Tapering inflation, declining interest rates, persistent growth in overseas Filipino remittances, and election-related spending should reboot consumer confidence. Thus, we are optimistic for the rest of 2019,” he said.

GT Capital’s businesses are Metrobank, Toyota Motor Philippines, Toyota Manila Bay Corp., Toyota Financial Services Philippines Corp., Sumisho Motor Finance Corp., GT Capital Auto Dealership Holdings Inc., Federal Land, Pro-Friends, Philippine AXA Life Insurance Corp. and Metro Pacific Investments Corp.       

  • Latest
  • Trending
Are you sure you want to log out?
Login is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

or sign in with