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Concepcion Industrial Corp.
#41
7-12

...avoid Big Grin

CIC expects single-digit growth amid challenges

CONCEPCION Industrial Corp. (CIC) is looking at a single-digit growth in both earnings and revenues for the year, calling 2018 an “even more challenging year than 2017” due to inflationary pressures and the weakening peso.

“I think economy-wise, it will be even more challenging, with the full effect basically of inflation going up, continued peso devaluation,” CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion told reporters after the company’s annual shareholders’ meeting in Makati City on Wednesday, July 11.

Mr. Concepcion noted higher inflation — which accelerated to a fresh five-year high of 5.2% in June — may affect consumer spending over the near future.

“But as a company, we still look at single-digit growth,” he said.

The listed firm, which supplies air-conditioners, air-conditioning solutions, and refrigerators under the Carrier, Toshiba, Condura, and Kelvinator brands, was able to sell over a million appliances in 2017. CIC expects sales to grow in the teens for this year, as it introduces new products in the refrigeration and washing machines category.

“A lot of the things to make sure that we are strong is to keep on introducing new products. We had 25% more SKUs (stock keeping units) last year. This year, another 25% in terms of new product launches,” Mr. Concepcion said.

To support the introduction of new products, CIC plans to invest between P150 million to P200 million to expand capacity in existing plants.

CIC manufactures a select range of its air-conditioners inside a factory in Light Industry and Science Park, where it produces 500,000 air-conditioning units a year. It also has a manufacturing facility for refrigerators, with a capacity of 300,000 units per year.

To-date, Mr. Concepcion said the facilities’ utilization rate is at 70-80%. Should sales continue to grow at a pace of 15-20% in the coming years, the company’s manufacturing facilities are expected to be fully utilized soon.

Since the Philippine peso has been depreciating, the CIC official noted local manufacturing has also become more competitive. With this, the company is looking at locally producing some products that they used to import.

“With that, if you look at the horizon demand, penetration level, the capacity of our plants are not sufficient to handle that. So as early as now we are investing,” Mr. Concepcion said.

CIC reported on Wednesday that sales grew by 14% in the second quarter, while profit after tax after minority interest (PATAMI) went up by 12%.

“It’s partly because you have price increases, but the big part is demand of the consumers as well as operational efficiencies, new products that we’re doing,” Mr. Concepcion said.


source: http://bworldonline.com/cic-expects-sing...hallenges/
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#42
8-10

...para sa akin basta Concepcion bulok! Tongue

CIC’s Q2 earnings rise on double-digit sales growth

CONCEPCION Industrial Corp. (CIC) posted a 14% growth in its attributable profit during the second quarter of 2018, fueled by a double-digit increase in sales of its products.

In a regulatory filing, the listed maker of air-conditioners and refrigerators reported a net income attributable to the parent of P402 million, versus the P352 million it booked in the same period a year ago. Net sales likewise jumped 14% to P4.62 billion for the quarter.

“We are pleased with the strong results coming out of the second quarter of 2018 as our team focused on delivering results based on cost reductions, precise strategic execution, and clear messaging across the organization in the midst of fluctuating exchange rates and high commodity prices,” CIC Chairman and Chief Executive Officer Raul Joseph A. Concepcion.

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This brought the company’s six-month attributable profit to P566 million, relatively unchanged from the P570 million it generated in the first half of 2017. Net sales meanwhile went up by seven percent to P7.69 billion.

The company has been implementing initiatives to reduce its costs in the face of challenges in foreign exchange and commodity prices. CIC expects headwinds for the rest of the year which may affect profitability, but is confident it will be able to adapt in the short term.

CIC has recently formed a unit called Cortex, which will explore opportunities in technology and business model innovations. This includes manufacturing smart appliances that can monitor energy consumption to alert owners of their usage.

“The next six to twelve months are going to be exciting for CIC as we launch new products and services particularly in internet-of-things. These will be our initial foray into offering practical smart appliances and solutions to Filipino Consumers,” Mr. Concepcion said.


source: http://www.bworldonline.com/cics-q2-earn...es-growth/
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#43
11-16

...bulok Concepcion Tongue

Concepcion Industrial profit slips 7%

CONCEPCION Industrial Corp. recorded a 7-percent drop in net income in the first nine months of the year to P1.1 billion due to unfavorable weather and higher inflation, among other factors. “This resulted to market slowdown in both the airconditioning and refrigeration segments,” it said. The company’s shares closed Thursday down 20 centavos at P35.80 apiece.


source: https://www.manilatimes.net/concepcion-i...-7/468462/
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