The year 2011 was a year of challenges in the face of a slowdown in the world economy from continued uncertainty in the US, Europe, and the Middle East. Closer to home, a series of typhoons and delays in implementation of Philippines government's infrastructure programs also impacted the construction industry. Amidst this difficult business environment, Phinma Corporation's consolidated revenue for 2011 amounted to P3.9 billion, only a modest 3% increase over the P3.8 billion posted in 2010, mostly due to a softened demand for our steel products. Consolidated net income which was P640.0 million in 2010 inclusive of profits of P386.1 million from a one-time property sale of one of our subsidiaries, decreased to P57.5 million in 2011.
Phinma Corporation's net income was also affected by continuing challenges faced by their animation company. One Animate Limited (One Animate) posted a net loss of P97.1 million, as the slowdown in the global economy dampened demand from international clients and the company experienced birth pains from its expansion into more complex Computer Generated Imagery (CGI) projects.
In June 2011, Phinma Corporation, in search for opportunities in the high value-added services sector, increased its Business Process Outsourcing portfolio through the acquisition of Fuld & Company, a Cambridge, Massachusetts-based global consulting firm and a leader in the field of competitive intelligence. The Company also acquired in 2011 Business Backoffice, Inc. (now Fuld Philippines), a knowledge process outsourcing (KPO) firm. The acquisition of these companies will be accretive, with synergies expected as Fuld and Co. continues to provide competitive business research services, with additional support and a wider geographic reach through Fuld Phils., Inc.
In 2012, although Phinma Corporation expects concerns in the US, Europe and the Middle East to continue to dampen the world economy, they look forward to a more optimistic domestic environment. The Philippine stock market has again reached new highs in early 2012, evidencing renewed investor trust in the country. Interest rates are expected to remain soft in the year, encouraging local investment and consumer confidence. The Philippine Government is expected to accelerate the delayed implementation of its Public Private Partnership infrastructure program as well as its R72 Billion stimulus package, to spur the domestic economy toward a target GDP growth of 5%. This year is also a year of recovery from natural calamity, and Phinma Corporation looks forward to participating in rebuilding the housing needs of the nation.