IMI 9-mth profit dips 5% on weak China business


INTEGRATED Micro-Electronics Inc. (IMI), the listed semiconductor manufacturer of the Ayala Group, said net income in the first nine months of the year dipped 5 percent from a year ago on the weaker performance of its China business.

In a disclosure to the Philippine Stock Exchange on Friday, IMI said its net income after tax declined to $20.8 million from $22 million in the same period last year.

Revenues slipped 1.0 percent to $615.7 million in the first nine months from $621.5 million a year ago.

“We’re constantly striking a balance between growth and profitability, while making disciplined investments in innovative growth platforms. Despite pressure on revenues in our non-core segments like consumer and computing, our productivity improvements more than made up for the volume declines and translated to an improvement in our operating income. At the same time, we spent $41.1 million or 6.7 percent of revenues on capital expenditures to fund growth initiatives,” said Gilles Bernard, IMI president and chief operating officer.

Revenues from its Europe and Mexico operations increased 12 percent to $228.9 million from $204 million last year on the back of robust sales of automotive body controls.

However, revenue from its China operations dropped 9 percent to $195.8 million due to the pullout of its consumer electronics business and weaker demand from a telecom infrastructure client.

Revenue from EMS operations in the Philippines was also down by 1 percent at $166.6 million from $168.5 million a year ago.

“Our operating results reflect our commitment to sustainable growth, and we are confident that we have the right strategies in place to enable us to seize the many opportunities ahead. In August, we announced our acquisition of VIA optronics. The rationale is compelling. It allows us to integrate VIA’s proprietary display solutions with IMI, enhancing customer engagement as well as IMI’s platform portfolio to further enable our customers,” said Arthur Tan, IMI’s chief executive officer.

“I foresee an IMI that will be a partner of choice for any company that requires a certain level of complexity, reliability and product quality. We will continue to focus as a core manufacturing entity for Ayala Corp. Our experience in creating new business ventures to produce different solutions for diverse markets provides opportunities for exciting long-term growth,” he added.

In August, IMI acquired a 75 percent stake in VIA optronics GmbH for $53.78 million. VIA optronics is a global optical bonding and display solutions provider, specializing on enhancing visibility and performance of display systems for curved, plastic, 3D and large size applications especially in outdoor use.

Started in 1980, IMI is an Ayala Corp. subsidiary engaged in the business of manufacturing semiconductors and electronic devices. About a quarter of its revenues comes from its Philippine operations while the rest come from its operations in China, Singapore, Europe and Mexico.


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