GT Capital profit flat in H1 on slowdown in auto unit

Ty family-led conglomerate GT Capital Holdings Inc. posted a net profit of P7.1 billion in the first six months, down 1 percent from a year ago due to slower earnings from its auto unit.

But for this full year, GT Capital might still attain a single-digit growth in net profit from the P14.18-billion bottom line made in 2017 as the automotive business would likely rebound in the second semester, GT Capital president Carmelo Bautista said in an interview after their investors’ briefing on Wednesday.

GT Capital’s core net income for the semester likewise reached P7.1 billion, 3 percent lower than the core profit in the same period last year.

“As anticipated, our first half results reflect the slowdown in the auto industry’s unit sales. This is attributed to the front-loading of orders late last year in anticipation of the TRAIN (Tax Reform for Acceleration and Inclusion) Law and the runout of the previous generation Vios during the second quarter,” Bautista said.

Toyota Motor Philippines Corp. saw a 30-percent drop in six-month net profit to P4.5 billion as consolidated sales dipped by 7 percent year-on-year to P76.4 billion. The company sold 73,136 units in the first semester, 14 percent less than the volume seen last year.

The suspension of some ride-hailing providers since August 2017 also contributed to the decline in Toyota’s sales.