May 2010 Financial News

ANSA McAL makes $690m after-tax profit

May 28, 2010

The ANSA McAL Group recorded a 2009 profit after tax of $690 million. In 2008, the Group made $680 million profit after tax. his according to the annual report for 2009 that the ANSA McAL board presented at the annual general meeting yesterday at Tatil Building, Maraval Road, St Clair. Gerry Brooks, chief operating officer, said despite 2009 being a tough year in the region and around the world, the Group has managed to do well. “At ANSA McAL, we have been able to transition our business model. Our people continue to be very focused, our governance is strong and has been fully strengthened in 2009 by some very specific initiatives and modifications to our governance model.

“The conglomerate model proved its resilience because of its geographical diversity. I’m proud because of the performance of our sector heads,” he said. According to his statement in the annual report, 2009 was the second year in which the Group exceeded the $5 billion revenue mark. “Considering the significant gross domestic product (GDP) decline suffered by regional economies, the five per cent decline in revenue ($300 million) million is very satisfactory.” According to the report, in the beverage sector, sales increased four per cent to $1.2 billion. “The sector continues to do well and has leveraged supply chain and operating efficiencies to generate double-digit growth in profitability, despite difficult economic conditions,” the report stated.

Sales in the manufacturing sector declined 11 per cent. “This decline was occasioned by the construction solutions businesses in the sector. This was not unexpected because of its strong correlation to the local and regional economy,” the report said. Sales in the distribution sector increased by $29 million and are poised to increase even more significantly in 2010, with the acquisition of the Barcadi brands in Trinidad, Guyana and Barbados.” According to the report, sales in the automotive sector industry declined sharply in 2009 (36 per cent), ushering in a down cycle. New car sales, at industry level, slipped to 12,500 from prior year sales of 18,000.

“Notwithstanding, the Group’s auto sector was able to share, albeit in a declining market,” the report said. The financial services market grew by 8 per cent or $846 million in sales. This sector’s profitability rose 94 per cent to $241 million in 2009. The media sector decreased six per cent to $170 million in the face of a slowdown in industry advertising. Profit before tax grew five per cent $46 million. This sector also enhanced its free cash section by $32 million. The report said the services sector performed “creditably” in 2009. ANSA Technologies and Alston Shipping were affected by declining sales in the maritime and energy sectors.


Source:
Trinidad Guardian
Friday May 28, 2010

http://guardian.co.tt/business/business/2010/05/28/ansa-mcal-makes-690m-after-tax-profit