Concepcion Industrial profit jumps in 1st quarter

CONCEPCION INDUSTRIAL Corp. (CIC) reported its attributable net income jumped 19% in the first three months of the year, amid strong demand for air-conditioning units.

In a statement, CIC said its net income attributable to the parent rose to P217.57 million in the January to March period, from P182.45 million a year ago.

The maker of consumer and industrial air- conditioners and refrigerators saw a 15% increase in sales to P3.122 billion in the first quarter, from P2.72 billion during the same period a year ago.

CIC said the higher sales were driven by a 14% growth in the consumer lifestyle solutions segment, which saw a significant uptake in the Condura brand. It further noted a 17% increase in its building and industrial solutions segment, which consist of heating, ventilation, and air-conditioning services as well as elevators.

“CIC delivered strong top-line and bottom- line performance through strong execution of new product introductions, programs at the trade level, and cost management despite the challenging environment,” CIC President, Chief Executive Officer and Chairman Raul Joseph A. Concepcion said in a statement.

“The first three months of the year was marked by slower market growth compared to last year, cost challenges from commodity and raw material price increases, weaker peso, and aggressive competition but we were well prepared for it,” he added.

CIC Chief Finance and Information Officer Victoria A. Betita said the company remains cautious as it sees the first quarter market softness continuing through to the first half.

“We, however, remain optimistic about our growth prospects in the medium to long term. As such, we will continue to invest in systems and capacity throughout the next two years while ensuring productivity in our day-to-day operations,” Ms. Betita said.

CIC controls the rights to cooling and refrigeration brands Carrier, Condura, Kelvinator, and Toshiba through Concepcion Carrier Airconditioning Co. and Concepcion Durables, Inc.

Shares in CIC rose P5 or 7% to close at P76 apiece on Wednesday. —