15th November 1999
METRO PACIFIC 1999 THIRD QUARTER RESULTS
The attached press release was distributed today by First Pacific's Philippine flagship, Metro Pacific Corporation.
For further information, please contact:
Metro Pacific Corporation
| Ian Wilson | Tel: (632) 811 0021 |
| Director | |
| Corazon P. Guidote | Tel: (632) 811 0367 |
| Group Vice President |
Information about First Pacific can also be accessed on:
| Web Site: | http://www.firstpacco.com |
| http://www.irasia.com/listco/hk/firstpac | |
| E-mail: | info@firstpac.com.hk |
15th November 1999
Metro Pacific Corporation announced today that it posted a consolidated net income of Pesos 2.6 billion for the nine month period to September 1999, up 14 times from last year's level of Pesos 172 million. Revenues increased by 5 per cent to Pesos 8.3 billion, primarily as a result of increased sales from Pacific Plaza Towers, the prestigious condominium development in Fort Bonifacio, and Negros Navigation Co., Inc. ("Nenaco"), which was consolidated from mid-1998.
The growth in net income was largely attributable to non-recurring gains following a series of asset disposals since the start of this year. In the first quarter, Metro Pacific made a partial sale of Smart Communications, Inc. to Nippon Telegraph and Telephone Corporation ("NTT") of Japan for Pesos 1.6 billion, while NTT also invested in new shares in Smart. These transactions reduced Metro Pacific's interest in Smart from 52 per cent to 38 per cent. In the second quarter, Metro Pacific sold its 100 per cent stake in Metro Bottled Water Corporation, the manufacturer of Wilkins Distilled Drinking Water, to La Tondena Distillers, Inc. for Pesos 1.2 billion. In the third quarter, Metro Pacific's interest in Metrolab Industries, Inc., the maker of Eskinol, Block and White and other skin-care products, was sold to Sara Lee Philippines, Inc. for Peso 1.02 billion. Both Metro Bottled Water Corp. and Metrolab Industries, Inc. have been classified as discontinued operations and reflected as such in the income statements for the current and prior periods.
Metro Pacific's balance sheet improved further with its ongoing efforts to reduce consolidated debts. Total liabilities dropped 22 per cent to Pesos 40.6 billion, of which only Pesos 20 billion are interest-bearing, a reduction of 23 per cent from its level in the previous year. As of end September 1999, the Company's consolidated debt-to-equity ratio was down to 0.54 from 0.57 as of end June 1999 and 0.71 as of end 1998. This ratio should decrease further in the fourth quarter to approximately 0.42 when the reversal of a liability of Pesos 8.8 billion, associated with a 64-hectare lot in Fort Bonifacio that is to be reallocated by the Government for use in other projects, is expected to be recorded.
During the year, Metro Pacific also issued approximately Pesos 4.1 billion of new equity, the proceeds of which were used primarily for debt reduction. In addition, over Pesos 2 billion of funds were generated from the sale of its two consumer-based subsidiaries.
Philippine Ratings Services Corporation (formerly CIBI Ratings, Inc.) recently maintained the credit rating of Metro Pacific for its commercial papers at PRS-A rating on outstanding long-term commercial paper and PRS 2- on short-term commercial papers ("STCPs"). Metro Pacific has also been issued a license from the Securities and Exchange Commission to sell up to Pesos 2 billion of STCPs. This, combined with other substantial credit lines that are presently available, obviates any possible need for Metro Pacific to issue additional common shares within 1999 or the first half of next year.
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