THE Bureau of Customs raised P6.3 million from an auction of forfeited luxury vehicles on April 27. — BUREAU OF CUSTOMS
THE BUREAU of Customs (BoC) on Wednesday said it surpassed its April collection target by 20%, as the value of imported oil continued to climb.
In a statement, the BoC said it collected P65.7 billion in April, 19.6% higher than its P54.9-billion target for the month.
“The collection performance is attributed to the improved valuation, intensified enforcement against illegal importations, and the improved compliance by traders to customs laws,” BoC said.
April marked the fourth month in a row that Customs has exceeded its monthly collection goals.
Last month’s collection showed a 28% increase from the P51.28 billion collected in April 2021, but 7% lower than the record-high P70.72 billion logged in March.
BoC Spokesperson and Assistant Commissioner Vincent Philip Maronilla said the high volume and value of imported oil products only partly contributed to the increase in BoC collections in April.
“Our continued effort towards a more efficient and effective collection again proved to be the right formula,” he said via Viber message.
The BoC in March saw significantly higher collections from oil products after crude prices soared in the aftermath of Russia’s invasion of Ukraine.
Citing a preliminary report from the BoC-Financial Service, the bureau said 14 of the 17 collection districts hit their targets in April.
These were the ports of San Fernando, Manila, Batangas, Legaspi, Iloilo, Cebu, Cagayan de Oro, Zamboanga, Davao, Subic, Clark, Aparri, and Limay, as well as the Manila International Container Port (MICP).
The strong collections in April pushed the four-month total to P253.62 billion, which makes up nearly 37% of the 2022 collection target of P679.226 billion.
“For the past 2 years, the BoC was able to surpass its annual target collection by +6.23% and +4.35% respectively even during a global health crisis,” it said.
In April, the BoC raised P6.3 million after an auction of luxury vehicles that were found to be undeclared.
Two vehicles, a used Mercedes SLK350 2001 and SLK55 2001 were sold to RMCE Metal Products Trading Corp., while a brand-new Mercedes Benz G500 was sold to Mopen Trading Corp.
Three other luxury vehicles were unsold, and will be auctioned at a later date.
In 2021, Customs collected P645.77 billion, 4.7% higher than its full-year target of P616.75 billion. This was also 20% higher than P537.69 billion in 2020, when the pandemic hampered supply chains. — Tobias Jared Tomas
A man wears a Philippine flag-themed mask, June 4, 2021. — PHILIPPINE STAR/ MICHAEL VARCAS
By Kyle Aristophere T. Atienza, Reporter
THE PHILIPPINES’ press freedom ranking further declined in 2022, amid continued cyberattacks on news websites and judicial harassment of journalists.
The country slipped nine spots to 147th out of 180 countries in the 2022 World Press Freedom Index by Paris-based Reporters Without Borders (RSF), which is said to be closely watched by some potential investors.
This is the Philippines’ lowest ranking in eight years since it ranked 149th in 2014.
In a report released on World Press Freedom Day on May 3, the global media watchdog noted that several news websites “that do not toe the line” of President Rodrigo R. Duterte, have been subjected to cyberattacks by trolls.
It also cited the Congress’ refusal to renew the franchise of ABS-CBN Corp., the country’s largest broadcast network, “leading to the closure of dozens of radio stations and TV channels.”
“The Philippines is due to emerge from Duterte’s six-year presidency in 2022, six years marked by countless verbal attacks coupled with judicial harassment targeting any media deemed overly critical of the government,” it said.
Mr. Duterte’s Acting Spokesperson Jose Ruperto Martin M. Andanar downplayed the report, saying that the Philippines is not yet included in the red list of countries with very bad press freedom situations.
“[It] has acknowledged that the Philippine media are extremely vibrant,” he said at a regular news conference on Wednesday.
The Reporters Without Borders used a new methodology for this year’s rankings, as it assessed press freedom in terms of political context, legal framework, economic context, sociocultural context and safety.
In terms of legal framework, Reporters Without Borders noted that Philippine laws do not protect the ability of journalists to work freely despite the freedom of the press guaranteed by the 1987 Constitution, which was crafted after a people power uprising toppled the late dictator Ferdinand E. Marcos.
It cited the case of journalist and Nobel Peace Prize winner Maria A. Ressa who is facing legal action brought by several government agencies.
“Defamation is still criminalized. The government uses laws relating to media ownership and taxation to harass critical media such as the Rappler website,” it said, referring to the website led by Ms. Ressa.
Maria Ela L. Atienza, a political science professor at the University of the Philippines, said the RSF report is “accurate.”
“The Duterte administration has not been very tolerant of media and did not respect media freedom. It has also not protected the rights of media workers,” she said.
Ms. Atienza said Mr. Duterte prefers to communicate with “friendly” media outlets, such as the Sonshine Media Network International (SMNI) of his spiritual adviser Apollo C. Quiboloy, who is wanted in the United States for sex trafficking chargers.
“The recent RSF ranking provides empirical basis for the existence of culture of impunity in the Philippines which certain government agencies either sweep under the rug or shamelessly deny,” Danilo Arao, who teaches journalism at the University of the Philippines, said in a Messenger chat.
The report also noted the end of supposed duopoly between ABS-CBN and rival GMA Network with the entry of another media company controlled by a firm of business tycoon and former Senate president Manuel B. Villar, who is allied with Mr. Duterte.
“Journalists working for this kind of media outlet have little editorial autonomy, self-censorship is the rule and respect for journalistic ethics is not guaranteed,” it said. “The internet and social media offer a space where many independent media can work freely but their economic viability is uncertain.”
In general, RSF said mainstream media ownership has reached greater levels of concentration than in the past, “a development accompanied by closer ties between media owning families and political barons at regional and national levels.”
It said radio and TV are the most popular media in the country, while print media continues to lose momentum with some regional newspapers struggling to continue their operations.
Still, RSF described the Philippine media as “extremely vibrant despite the government’s targeted attacks and constant harassment, since 2016, of journalists and media outlets that are too critical.”
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said global and local investors would likely consider the index in making investment decisions.
“Global investors become keener and more particular on the compliance of governments and companies that they invest into on environmental, social, and governance (ESG) standards, as also encouraged by global regulators,” he said in a Viber message.
“Stronger institutions, rule of law, basic rights and freedom, which are part of compliance with ESG standards, are important considerations when making investment decisions.”
John Paolo R. Rivera, an economist at the Asian Institute of Management, said in a Viber message that the index would allow investors to gauge the level of political stability in the country.
“The level of media freedom determines many forms of stability — whether social, political, economic,” Mr. Rivera said.
Among East Asia and Southeast Asian countries, Timor-Leste had the highest ranking at 17th place on the World Press Freedom index, followed by Taiwan (38th) and South Korea (43th). North Korea had the worst press freedom ranking overall at 180th spot. China ranked 175th on the index.
SAN MIGUEL Food and Beverage, Inc. (SMFB) announced on Wednesday that its first-quarter consolidated income increased by 1% to P12.7 billion, propelled by higher sales and better product pricing.
Excluding nonrecurring gains related to the Corporate Recovery and Tax Incentives for Enterprises Act, or CREATE law, the company’s net income for the quarter was up by 1% to P9.2 billion.
“We remain optimistic and steadfast in pursuing strategies that will drive long-term value for our shareholders. As the market continues to be dynamic, we will continue to manage the inflationary environment with the same level of discipline that carried us through the years,” SMFB President and Chief Executive Ramon S. Ang said in a statement on Wednesday.
Consolidated revenues grew 9% to P83.1 billion, driven by a combination of volume growth and better pricing across multiple categories in its beer, spirits, and food businesses.
“As with other consumer goods companies, SMFB was faced with rising input costs on raw materials and utilities, squeezing profits and muting the gains from volume growth compared to the same period last year,” the company said.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) were also up 1% to P15.7 billion.
Of its businesses, the food segment reported a 13% jump in consolidated revenues to P40.8 billion as demand for its brands remained robust.
However, its consolidated EBITDA for the first quarter of the year fell by 6.6% to P5.7 billion, while consolidated operating income dropped by 6.7% to P4.2 billion, impacted by inflationary pressures.
The animal nutrition and health and flour segments posted double-digit revenue growth while poultry and processed meats also recorded higher sales.
“Advertising and promotional campaigns, expansion of distribution networks, superior product quality, and better pricing all contributed to the growth” of the food business, SMFB said.
Meanwhile, the beer business reported a 3% rise in revenues to P29.7 billion on account of improved volumes in its international operations and price adjustments.
Its EBITDA and income from operations were flat in the first quarter at P8 billion and P6.8 billion, respectively.
SMFB said its beer business would continue to implement “cost management initiatives” to preserve profits.
For the rest of the year, the segment’s prospects have been boosted by the reopening of on-site channels after the lifting of pandemic restrictions, it added.
The spirits business reported that revenues jumped 11% to P12.6 billion due to “strong thematic campaigns, consumer promotions, a broadening distribution network, and efficiencies all supported growth.”
The EBITDA of the spirits business rose 32% to P2 billion, while income from operations increased 39% to P1.8 billion.
At the stock exchange, SMFB shares fell by P3.05 or 5% to P57.95 apiece. — Luisa Maria Jacinta C. Jocson
PETRON Corp. on Wednesday reported a net income of P3.6 billion in the first quarter, or more than double its P1.73-billion bottom line a year ago, as sales surged amid greater economic activity.
“Our efforts to increase our financial resilience, improve our efficiencies, and strengthen our brand equity have all yielded positive results. Two years into this pandemic, we now find ourselves in a position of renewed strength and confidence as we continue to navigate the industry with the same caution and prudence that helped us turn our financial performance around,” said Ramon S. Ang, Petron president and chief executive officer, in a media release.
The country’s largest oil refining and marketing company said first-quarter consolidated revenues jumped to P172.33 billion, or more than twice higher than year-ago’s P83.31 billion, as demand for its products recovered at a time when international prices were higher.
It said from January to March this year, Dubai crude averaged at $95.6 per barrel while due to geopolitical tension and supply concerns persisted with the continuing Russia-Ukraine conflict.
Petron, which is also in the Malaysian market, recorded sales volumes of 25.67 million barrels during the quarter, up 34% year on year, because of higher demand and eased mobility restrictions. The figure represents consolidated sales volumes from the Philippines, Malaysia, and its trading unit in Singapore.
The listed company has a refining capacity of 268,000 barrels per day and produces a full range of fuels and petrochemicals.
Its local retail segment registered a 7% rise while its commercial volumes, which include sales of its jet fuels and lubricant products, expanded nearly 50% with “increased economic activity and gradual resumption of local and international travels.”
“The oil firm saw significant volume growth in all its products. Total domestic sales jumped by about 43%, reflecting the overall improvement in local demand,” Petron said.
Petrochemical volumes increased by around 30%, which it attributed to the increased demand for resin used for personal protective equipment, or PPE, and online deliveries.
“Fueled by the demand growth and higher prices of petrochemicals, Petron resumed operations of its polypropylene plant in January 2022 after a two-year shutdown,” the company said.
During the period, Petron said it also strengthened its reach and broadened its offerings ahead of future demand.
“The company opened more stations during the first quarter in major areas as part of its larger network expansion program. Since 2021, Petron has adopted a new modular and panelized construction system for some of its new builds, creating a more efficient and greener way to construct service stations,” it said.
This year, its new power plant will be completed, allowing the company to efficiently power its refinery in Bataan.
“This would make the country’s lone refinery not only capable of supplying 40% of the national fuel demand but also self-sufficient in terms of its power requirement,” it said.
Mr. Ang said the company’s recent initiatives “are meant to ensure the growth and sustainability of our business in the years to come.”
“For us, the challenge ahead is not just to keep growing in terms of size but also to make a more significant impact in addressing environmental issues and building a better world for the next generations. We know there is more to do, and we are fully committed to seeing this vision through,” he said.
Petron operates around 40 terminals in the region. It has around 2,800 service stations where it sells gasoline and diesel. Its network is complemented by its Treats convenience stores.
On Wednesday, shares in the company climbed by 29 centavos or 8.98% to close at P3.52 each. — VVS
METRO Pacific Investments Corp. (MPIC) saw its attributable net income for the first quarter decline by 19% to P5.7 billion from the year-ago figure that included the sale of shares in two companies.
Its total comprehensive income grew by 8% to P7.5 billion in the first quarter, the company said in a statement.
In the same period last year, MPIC recorded gains as a result of the sale of shares in power generation company Global Business Power Corp. and Thai toll road operator Don Muang Tollway Public Co. Ltd.
MPIC saw contributions from its businesses grow by 14% to P4.3 billion: P2.5 billion from power, P1.2 billion from toll roads, and P600 million from water.
The company’s other businesses — including hospitals, light rail, fuel storage, and logistics — incurred an overall loss of P76 million.
It said its core net income for the quarter went up 23% to P3.1 billion after benefitting from “continued economic recovery and intensified election-related activities in the country.”
“Toll road traffic is now close to pre-pandemic levels, and power consumption has considerably increased as more industries ramp up operating capacity,” the company noted.
MPIC Chairman Manuel V. Pangilinan said: “Economic recovery continues to be this year’s story. It is MPIC’s story as well, but one that is inextricably linked to everyone else’s. Understanding this interconnectedness is a crucial lesson we have learned from the pandemic: that we need to come together to work out how we can progress from a crisis; that our development as a business is tied to the advancement of others.”
“Such progress is as significant as profit and is therefore linked to creating value for all. In other words, that our progress is yours as well,” he added.
He said the company’s focus over the near to medium term is to “continue to deliver on our commitments to support infrastructure development in the country.”
“We are also actively evaluating opportunities in multiple sectors that will potentially enable further economic development such as logistics, agriculture, real estate, and tourism.”
MPIC shares closed unchanged at P3.82 apiece on Wednesday.
MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT, Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin
CENTURY Pacific Food, Inc. reported on Wednesday that its earnings in the first quarter rose by 10% to P1.4 billion, driven by the performance of its branded segment.
“The first quarter of 2022 has received more than its fair share of headwinds, yet, concurrently, we are feeling tailwinds coming from the Philippine economic reopening,” Century Pacific Chief Finance Officer Richard S. Manapat said in a statement.
“Consumers are feeling the impact of rising commodity prices but, compared to the height of the pandemic, have more disposable income. They continue to gravitate toward essential goods and value for money brands, underpinning the demand for Century products,” he added.
Consolidated net revenues likewise increased by 10% to P14.7 billion from the similar period the year before.
Of its businesses, the branded segment contributed 82% to the company’s topline. The segment is composed of marine, meat, milk and other emerging businesses.
The company reported a year-on-year growth of 17% as domestic demand for affordable and shelf-stable consumer goods remained resilient for the quarter.
Meanwhile, the company’s tuna and coconut exports business contracted by 13% due to rising freight rates from Asia to the West and limited container availability.
Mr. Manapat said he was grateful for the continued resilience shown by the company.
“We have seen two consecutive years of extraordinary performance and kickstarted 2022 with healthy business results. This puts us in a good position to power through what we expect to be a volatile year, especially with respect to rising input prices,” he said.
He added that the company is intent on pursuing “long-term growth initiatives” by continuously boosting its core marine and meat businesses and investing in the growth of its emerging businesses, citing newly launched “innovations.”
In 2019, the company launched its packaged culinary coconut cream brand Coco Mama, which has been posting “strong results” since then.
In 2020, it entered the nascent plant-based meat alternatives category with the launch of its unMEAT brand. It also entered the pet food market last year with its brand Goodest.
“We see much uncertainty lying ahead but in times like these, we believe it is crucial for us to remain focused on running a sustainable business for our stakeholders. To us, that means keeping to our mission of providing affordable nutrition to our consumers, staying true to our strategic priorities, and proactively managing risks to deliver decent business results in parallel,” Mr. Manapat said.
Century Pacific is primarily engaged in manufacturing, marketing, and distributing processed marine, meat, milk, coconut, plant-based, and pet products. Its brands include Century Tuna, Argentina, 555, Angel, and Birch Tree.
Century Pacific stocks dropped by 70 centavos or 3.06% to close at P22.20 each at the stock exchange on Wednesday. — Luisa Maria Jacinta C. Jocson
REAL estate developer Cebu Landmasters, Inc. (CLI) announced on Wednesday that it is launching Casa Mira Homes Ormoc subdivision as part of its Eastern Visayas expansion.
“We are pleased that Casa Mira has facilitated the company’s expansion to untapped markets like Ormoc. At the same time, it has offered prospective families in Visayas and Mindanao a chance to make the big leap to first-time homeownership,” CLI Chairman and Chief Executive Jose R. Soberano III said in a statement on Wednesday.
As the 11th Casa Mira development in Visayas and Mindanao (VisMin), the project has 685 units on a nine-hectare property. It is expected to be completed by 2023 and projected to generate sales of P2 billion.
“Pre-selling activities preceded the launch of the P950-million development offering townhouses and single-detached units with floor areas from 42 to 62 square meters (sq.m.). Casa Mira Homes Ormoc is now close to 70% sold attesting to the popularity of the listed company’s economic housing brand,” CLI said.
The residential brand includes amenities such as chapel, swimming pool, play area, basketball and tennis courts.
CLI said it is set to unveil more Casa Mira projects in Cebu, Ormoc, Bacolod, Iloilo, Cagayan de Oro, Davao, Dumaguete and Palawan within the year.
The property developer has a portfolio of 63 residential projects across VisMin offering close to 30,000 units for the high-end, mid-market and economic segments, with the total sales value of the said projects amounting to P73.6 billion, with 89% of the units sold out.
For 2022, CLI said it is also set to launch 20 new projects.
For 2021, the company said its net income attributable to shareholders grew 42% to P2.61 billion amid strong housing demand, exceeding its 2019 bottom line by 30%.
On Wednesday, CLI shares were down by four centavos or 1.43% to finish at P2.75 at the stock exchange. — Luisa Maria Jacinta C. Jocson
REIGNING champion Ateneo crosses paths with rival La Salle in an early gigantic collision as the University Athletic Association of the Philippines (UAAP) rolls out the women’s volleyball tilt side-by-side with the ongoing Final Four basketball action at the Mall of Asia Arena.
Game time is at 4 p.m. with the Lady Eagles seeking vengeance against their fierce nemeses after bowing to the Lady Archers back in Season 82 before the pandemic halted the volleyball tilt and the remainder of the UAAP events.
Before that, Santo Tomas clashes with Far Eastern University (FEU) at 10 a.m. while then league-leader National University (NU) seeks to pick up where it left off against Adamson at 12 p.m. University of the Philippines (UP) and University of the East (UE) cap off the four-game opening bill at 6 p.m.
Back in March 2020, the Lady Eagles suffered a 17-25, 25-17, 17-25, 15-25 loss against the Lady Archers to start their title defense bid on a low note — making it a perfect chance this time despite a long delay to finally exact revenge.
But more than that, Ateneo is just relishing an opportunity to play amid the still ongoing pandemic like the rest of the UAAP field.
“We’re excited to play again, especially our players. We’re thankful and at the same time nervous because of course, we have not played in two years. We will find a way,” said coach Oliver Almadro, who is banking on a young team led by Faith Nisperos and Dani Ravena to lead their title retention goal.
That goal will not be a walk in the park as the Lady Eagles have to adjust from the departure of seasoned aces Kat Tolentino, Jho Maraguinot, Jules Samonte and Ponggay Gaston.
The Lady Archers, who also lost veterans Tin Tiamzon, Aduke Ogunsanyan and Michelle Cobb to graduation, will flaunt an equally promising squad bannered by Jolina Dela Cruz, Thea Gagate and Leila Cruz.
YIELDS on the term deposits of the Bangko Sentral ng Pilipinas (BSP) went up on Wednesday, with market players positioning ahead of an expected hike from the US Federal Reserve and the national elections.
Total demand for the term deposit facility (TDF) of the central bank amounted to P296.062 billion on Wednesday, well above the P270-billion offering as well as the P276.324 billion in bids a week ago.
Broken down, tenders for the seven-day papers reached P139.258 billion, surpassing the P100-billion auctioned off by the BSP as well as the P102.146 billion in bids the previous week.
Banks asked for yields ranging from 1.89% to 2.0222%, a narrower band than the 1.85% to 2.18% seen a week ago. With this, the average rate of the one-week term deposit inched up by 0.02 basis point (bp) to 1.9597% from 1.9595% previously.
Meanwhile, the 14-day papers fetched bids amounting to P156.804 billion, lower than the P170-billion offer as well as the P174.158 billion in tenders logged a week ago.
Accepted rates for the tenor were from 1.925% to 2.37%, thinner than the 1.84% to 2.39% range seen on April 27. This caused the average rate of the two-week papers to increase by 6.72 bps to 2.0352% from 1.968% in the prior auction.
The central bank has not offered 28-day term deposits for more than a year to give way to its weekly auctions of securities with the same tenor.
Both the TDF and 28-day bills are used by the BSP to mop up excess liquidity in the financial system and to better guide market rates.
TDF yields rose ahead of an expected rate hike from the US Federal Reserve, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The Federal Open Market Committee is widely expected to fire off another rate hike at its May 3-4 review following the 25-bp increase it made in March.
Fed Chairman Jerome H. Powell has said they will consider increasing borrowing costs by a bigger 50 bps to help tame inflation that has reached multi-decade highs.
Fed policy makers are looking set to deliver a series of aggressive interest rate hikes at least until the summer, Reuters reported.
There won’t be economic or dot plot projections at this meeting, but the market will pay close attention to Mr. Powell’s press conference for clues on interest rates and balance sheet reduction.
Higher TDF yields were also seen ahead of the national elections on Monday, Mr. Ricafort added.
Former Senator Ferdinand R. Marcos, Jr., who faces tax evasion allegations, remains the frontrunner for the presidency based on the latest round of surveys.
Meanwhile, a Bloomberg poll of analysts showed analysts and investors want Vice-President Maria Leonor G. Robredo, the second leading candidate, to become the country’s next chief executive. — L.W.T. Noble with Reuters
JOHNNIE Walker is making the wholesome Burgos Park in Bonifacio Global City (BGC) one of the city’s evening hotspots with the opening of the Johnnie Walker Highball Bar.
The pop-up bar will be open until May 28 (following an opening on April 28), every day from 5 p.m. to 1 a.m.
Aside from the highballs themselves, the bar features arcade games like a claw machine, air hockey, and a football table, where one can play games to win Johnnie Walker merchandise. The drinks cost a minimum of P250.
There were six drinks up for grabs during the opening evening: Johnnie and Lime, Johnnie and Ginger, Johnnie and Apple, the Johnnie Citrus Smash (basically a whisky mojito), the Johnnie Root Beer Float (you read that right), and the Johnnie Brown Sugar Boba (a milk tea with Johnnie Walker).
Diageo Brand Ambassador Rian Asiddao told BusinessWorld what makes a good highball. For starters, he explains what a highball is: a drink template that uses spirit and a mixer, citing gin and tonics as one. “For me, what makes a good highball is a good ratio — 1:4, 1:3; one part of your Johnnie Walker and three parts of your mixer,” he said.
Citing the more unconventional mixers like the root beer and the milk tea (he specified using Earl Grey, to get some earthiness), he discusses what other mixers can go with Johnnie Walker Black Label. “The good thing about whisky is it’s all about flavors,” he said. He cites the smoky, fruity, creamy, and spicy notes in Johnnie Walker, which a mixer can bring out individually. For example, the root beer would complement Black Label’s spiciness. He also gave other unconventional whisky mixers like kombucha and tea and soda a mention.
“A lot of people think that a cocktail can be complicated, but it’s very easy to make,” Merell Beltran, Diageo Marketing Manager for Culture and Advocacy said, citing as well Mr. Asiddao’s 1:3 ratio.
Highballs are perfect for the Philippines, she noted: “It’s really the perfect drink, especially with weather such as in the Philippines. You want something that’s really fresh, really cold, and easily enjoyable by everyone.”
Ms. Beltran touched on their performance during the pandemic, as well as measures they have taken to face changes in a world that had been forced to stay at home. “A lot of industries have really shifted into channels that allow us to accommodate the needs of consumers who are stuck at home.” This means that Diageo has opened official online stores, one in Lazada, and one in Shopee. “That’s basically the route that we’ve heavily invested on,” she said. — Joseph L. Garcia
INTEGRATED Micro-Electronics, Inc. (IMI) on Wednesday reported a net loss of $2 million in the first quarter of 2022 due to supply chain disruptions.
“As the entire industry has been dealing with the global component shortage for more than a year, IMI teams across the globe continue to embody the resilience and determination that has enabled us to rebound from similar macro-economic obstacles in the past,” IMI Chief Executive Arthur R. Tan said in a statement.
The company said that supply chain delays hindered profitability but cost saving measures and continued collaboration with customers and suppliers mitigated the increased costs.
IMI did not provide a comparative year-ago figure, but it said the current loss figure “narrowed” compared with the previous quarter.
Meanwhile, revenues during the first quarter of this year grew 2% to $334 million year on year.
“Customer demand remains strong and new product development is still in high gear as evidenced by our revenue growth and strong pipeline performance despite the global supply chain issues in the past several quarters,” Mr. Tan said.
He added that the focus of the company now is on driving profitability by “collaborating with customers and improving supply chain efficiency as the component situation normalizes.”
IMI’s wholly owned businesses ended the first quarter with $258 million in revenues, or up 1% from the same period last year.
Meanwhile, its subsidiaries’ revenues improved by 4% to $76 million.
“However, with these business units having more specialized products in the automotive, aerospace and defense markets, extended supply lead times and limited opportunities to use alternative components have significantly affected margins. COVID-related shutdowns and transportation disruptions in Suzhou, China have also affected operations in VIA [Optronics GmbH],” IMI said.
In total, non-wholly owned subsidiaries reported a net loss of $5.3 million.
“The recent lockdowns in China and intense geopolitical tension in Europe have created a new set of uncertainties in the global market. Along with the extended recovery of the electronics supply chain, IMI is still being challenged by multiple macroeconomic headwinds,” IMI President Jerome S. Tan said.
“However, globally, we have been managing these disruptions while taking advantage of opportunities to improve our operations. As more economies start to open up and the world returns to normalcy, the company remains committed to manufacturing excellence and accelerating our return to better profitability,” he added.
IMI is the manufacturing arm of AC Industrial Technology Holdings, Inc., a wholly owned subsidiary of Ayala Corp.
It specializes in “highly reliable and quality electronics for long product life cycle segments such as automotive, industrial electronics and more recently, the aerospace market.”
At the stock exchange on Wednesday, IMI shares were up by two centavos or 0.29% to close at P7.00. — Luisa Maria Jacinta C. Jocson
DE LA Salle Green Archers guard Evan Nelle — THE UAAP
THIRD-seeded La Salle withstood a late uprising by No. 2 and twice-to-beat-armed University of the Philippines (UP), escaping with a narrow 83-80 win to forge a do-or-die Game 2 in the Final Four of the University Athletic Association of the Philippines (UAAP) Season 84 at the Mall of Asia Arena in Pasay City.
The Green Archers led by as many as 22 points but needed one last stand to survive the Fighting Maroons’ comeback to keep their finals hopes alive.
Evan Nelle was on target for the Green Archers, unloading 26 points on crisp 8-of-13 shooting, including five triples, six rebounds, seven assists and three steals. Justine Baltazar manned the paint with 15 markers, 18 boards and two blocks.
Kurt Lojera was also instrumental with 11 points as Michael Phillips, Cyrus Austria and Schonny Winston chipped in seven apiece for La Salle, which will try to get the job done in sudden death tomorrow.
“Well, I think the boys really played hard. They played 40 minutes of solid basketball discipline, which I’ve been asking them to do. It was really a team effort and everybody was on the same page,” said coach Derrick Pumaren as La Salle finally got back at UP after two losses in the eliminations, 61-59 and 72-69.
“We’re happy we won the ballgame, but we only tied the series. There’s still one more game,” he added.
Ranged against a spirited UP side that put a lone defeat in Ateneo’s previously pristine slate last weekend, La Salle did not shy away from the challenge and shocked its counterpart with a hot 24-16 start that swelled to 66-44 midway through the third period.
It was all La Salle, which still held a 79-63 lead in the last three minutes, until UP regained its bearings and uncorked a 15-2 rally highlighted by Gerry Abadiano’s triple to get within 81-78 in the last 12 seconds.
But Nelle came to the rescue once again, draining two of his four charities as UP tried to make it a free throw shooting game, to ice La Salle’s win despite Maodo Diouf’s dunk at the horn for the final count.
Diouf hauled down 18 points, 20 rebounds and three blocks but his frontcourt partner Carl Tamayo struggled for just seven markers in a dismal 2-of-14 outing that dealt a big blow to UP’s chances.
Ricci Rivero (18) and Zavier Lucero (17) also played their part in a losing cause for the Fighting Maroons, who still can make the finals with a win in Game 2. — John Bryan Ulanday
The Scores:
La Salle 83 – Nelle 26, Baltazar 15, Lojera 11, M. Phillips 7, Austria 7, Winston 7, Nwankwo 4, Nonoy 3, Manuel 3, B. Phillips 0.
