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Integrated Micro-Electronics, Inc. (IMI) opened the year with first quarter consolidated revenues of $323 million (P16.61 billion), relatively flat compared to last year. Margins remain constrained by global market slowdown due to the fallout from the trade wars, political uncertainty in the UK and the ongoing electronic component shortage. Gross profit for Q1 is at $29.1 million with margins declining to 9.0% from 10.6% last year. The company ended the quarter with $335,000 net income (P16.69 million) versus last year’s net income of $5.6 million.
IMI continues to grow its target business segments — automotive, industrial, and aerospace which comprise 77% of total revenues for the quarter. Automotive at $168 million, grew 27%. Industrial at $68 million, grew 10%. Aerospace, which IMI entered through the acquisition of STI, is now at $13 million, a growth of 6% from last year. However, consumer and telecom segment declined by 59% and 12%, respectively, due to delays in new project awards and China economic slowdown.
“Despite the unfavorable business climate, IMI remains committed to our assurance of highest quality and on-time delivery for all our business partners,” said Gilles Bernard, IMI president and chief operating officer.
Aside from elevated raw materials costs, tight supplies of electronics components raised the need for expedited production cycles and expensive freight deliveries to maintain IMI’s top-level standards.
“As we continue to address the short-term challenges in our supply markets, we remain aggressive in executing our efficiency initiatives to align our cost structure with uncertain external environment and ensure the stability of all our businesses,” Bernard added.
“Long and healthy relationships with our key customers have enabled us to open discussions to mitigate financial headwinds on IMI as we weather the global component issue. Having positioned ourselves as a top provider of high complexity technology solutions, we are poised to rebound quickly on both revenue and profitability aspects as our investments in the past years come to full utilization,” said Arthur Tan, IMI chief executive officer.
IMI has utilized $180 million for capital expenditures in the past three years, a significant portion of which was spent to support development of high-tech businesses and the opening of new operating sites that expanded its manufacturing footprint to Serbia and Japan.
Integrated Micro-Electronics Inc. (IMI), the manufacturing arm of AC Industrial Technology Holdings, Inc., a wholly-owned subsidiary of Ayala Corporation, is among the leading global manufacturing solutions expert in the world. IMI now ranks 17th in the list of top 50 EMS providers in the world by the Manufacturing Market Insider (March 2019 edition), based on 2018 revenues. In the automotive market, it is the 5th largest EMS provider in the world per New Venture Research.
IMI specializes in highly reliable and quality electronics for long product life cycle segments such as automotive, industrial electronics and more recently, the aerospace market.
From its 21 manufacturing plants across 10 different countries, IMI provides engineering, manufacturing, and support and fulfillment capabilities to diverse industries globally.