Ayala Corp., one of the Philippines’ top conglomerates, said net income in the first quarter fell 18 percent from a year ago due to declines in its real estate and electronics businesses.
The company said Thursday profit fell to 2.2 billion pesos ($46 million).
Ayala’s telecom and banking arms — Globe Telecom Inc. and Bank of the Philippine Islands — posted double-digit growth, but its real estate unit Ayala Land Inc.’s earnings plunged 51 percent on the absence of one-time gains and slow demand for houses.
Ayala said sales of electronics manufacturing unit Integrated Microelectronics Inc. contracted 26 percent as world demand for electronics remained weak, while interest expense and non-cash charges resulted in a combined net loss of 307 million pesos ($6.42 million) for its business process outsourcing companies.
“We are pleased to see some degree of resiliency in domestic demand despite the slowdown in the global economy,” said Ayala President Fernando Zobel de Ayala.
He said he expected tempered consumer confidence to eventually turn.
Ayala Corp., the holding company of the one of the Philippines’ oldest business groups, also has interests in water distribution and mall operations.