Phinma net profit plunged to P57M in ’11 from P640M

Phinma Corp.’s net profit declined sharply last year as the global economic slowdown gnawed at its steel production and animation businesses.

Phinma posted a net profit of P57.5 million versus the P640 million bottom line the previous year, which however included a one-time gain from the sale of a prime property by one of its subsidiaries, the company disclosed to the Philippine Stock Exchange on Friday.

The non-recurring gain in 2010 amounted to P386.1 million.

In its disclosure, Phinma said a series of typhoons and delays in the implementation of the government’s infrastructure programs weighed on the construction industry.

As such, its consolidated revenues last year increased by a modest 3 percent year-on-year to around P3.9 billion, mostly due to slower demand for steel products.

Union Galvasteel Corp., its steel roofing unit, posted a net income of P107.9 million in 2011 from the previous year’s P202 million.

“In spite of these, the company maintained its leadership in the pre-painted roofing industry and is poised for a recovery as the government accelerates implementation of its public-private partnership (PPP) programs and as the nation rebuilds in the face of the natural calamities of 2011,” the disclosure said.

Phinma’s consolidated net income was likewise affected by the losses of its animation unit, One Anime Ltd., which incurred a net loss of P97.1 million.

The loss was attributed to delayed projects from clients as well as production and cost pressures as the company took on more complex computer generated imagery (CGI) work.

“One Anime has since instituted measures to better manage client relationships and improve CGI capabilities to control costs and margins,” the company said.

The group also reported a lower equity in net earnings of property unit Phinma Properties to P25 million from P47.5 million in 2010 as the low-cost housing industry was broadly affected by the loan take-out tightening by state-controlled Home Development Mutual Fund or Pag-IBIG.

Meanwhile, earnings from the four schools under the Phinma Education Network (PEN) grew by 5 percent to P131.3 million.  Total enrollment expanded by 2 percent to 25,964 students.

PEN improved school facilities last year and also performed well in terms of graduate examination passing rates, the disclosure said.

Financial services affiliate AB Capital, on the other hand, grew net income by 30 percent to P28.3 million from the previous year.