The Bellwether – Issue 24

Releasing the 24th issue of The Bellwether, as published by FMIC's IAG-Research.

This is a fortnightly publication on market action and outlook.

The following are the highlights of the issue:

Strong start for 1Q2013 earnings

Manila Electric Company (Meralco) achieves 1Q2013 core earnings growth of 18% to Php4bn on flat energy sales

DMCI Holdings, Inc. (DMC) infra book swells from Php14bn to a likely Php57.5bn

Strong start for 1Q2013 earnings

The 1Q2013 earnings season started out with a bang; eleven companies in various industries reporting double to triple digit year-over-year (yoy) earnings growth.

Flat Energy Sales

Meralco posted reported earnings of 19% to Php4bn in 1Q2013 year-on-year (y-o-y). Core earnings were also up 18% to the same level of Php4bn. But the income growth was on flat energy sales of 1.2% and overall topline growth of -1.2%. (Meralco’s revenue comprised generation, transmission and distribution. The first two are pass-throughs while distribution accrues to Meralco).

DMCI Holdings, Inc. (DMC) infra book swells from Php14bn to a likely Php57.5bn

DMCI Holdings Inc. is increasingly an infrastructure and power play. Order backlog of its construction arm, DMCI Engineers, is likely to shoot up to as high as Php57.5bn, our estimate.