ATI posts hike in gross revenues, exceeds cargo volume targets

February 16, 1999 PSE CIRCULAR FOR BROKERS NO. 285-99 ATI posts hike in gross revenues, exceeds cargo volume targets Manila South Harbor operator Asian Terminal Inc. (ATI) exceeded its volume targets during the second quarter of its 1998-99 fiscal year (ending July), and consolidated gross revenues increased by P14.45 million to P601.77 million. Although below the net income posted for the same period last year, the Company is expecting better year-end results for the fiscal year ending June 30, 1999. cdll In a disclosure to the Securities and Exchange Commission (SEC), ATI said it paid the national government P110.07 million in Philippine Port Authority (PPA) fees for the same period The positive gross revenue figure was also partly due to the dollar-denominated rates at the Mariveles Grains Terminal (MGT) in Bataan which posted a volume two percent, or 19,000 metric tons (Mts) higher than its yearly target, and a 21 percent growth from last year's performance. The Company also recorded positive variances in volume targets for both containerized and general cargo. Container operations handled a total of 110,492 twenty-equivalent units (TEUs from October 1 to December 31, five percent above the 105,372 TEU target. General cargo posted 857,252 Mts or 23 percent above the budget target. Despite the economic crunch and the expected volume slowdown during the second quarter, ATI said performance was helped by the stronger peso, recovering export sector, and lower, more stable interest rates. Cost-cutting measures also whittled down expenses to P321.1 million from the P326.9 million posted during the same quarter last year. The firm said its fiscal performance will also be strengthened by the 10 percent container arrastre rate hike approved by the PPA last December 10 and implemented on January 15, 1999. The ports agency also reduced the free storage period from six to five calendar days for imported cargo and from five to four days for export cargo. ATI, saying it remains bullish on the national economic prospects, said it will continue to improve port facilities, acquire modern stevedoring and terminal handling equipment and computer systems in bid to become the premier port in the region.