Swire Pacific's earnings soared 31.2 per cent to HK$5.4 billion last year from HK$4.11 billion in 2001, thanks to a sharp rise in the contribution from associate Cathay Pacific Airways.
Gains from investment property sales also offset provisions made for residential developments and declines in office rental.
The result was in line with analysts' estimates of HK$5.45 billion from a Thomson First Call consensus. The stock yesterday fell HK$1, or 2.89 per cent, to HK$33.50 on profit-taking.
Group chairman James Hughes-Hallett said rental levels, particularly in the office sector, would continue to suffer because of a combination of weak demand and new supply in the short term. Prospects for the aviation sector are also uncertain.
But the recovery in its aviation business last year contributed a HK$2.11 billion gain to Swire's earnings, including HK$1.67 billion from Cathay Pacific.
Cathay Pacific reported a sixfold increase in net profit of HK$3.98 billion last year from HK$657 million a year ago.
Swire made a HK$2.45 billion profit from rental income of its property investment division, down 6.7 per cent from HK$2.63 billion. Another HK$407 million in profit came from the sale of 25 luxury flats at The Albany in Mid-Levels.
