Integrated Micro-Electronics Inc. (IMI), the electronics manufacturing arm of listed group Ayala Corp., saw a significant decline in its first-half net profit on the weight of weak capacity utilization in its China facilities.
In a statement, the company said that despite seeing a slight increase in its revenues, its net income for the period still went down 33 percent to $2.1 million, “due primarily to lower capacity utilization in its China facilities.”
However, during the first six months of the year, the company’s revenue stood at $350.5 million, 8 percent higher from the same period last year.
The increase in its revenue, according to IMI, was mainly from its strong business expansion in Europe, Mexico and the Philippines.
IMI’s revenues also increased by 13 percent to $185.7 million in the second quarter of 2013, from the $164.8 million it earned in the preceding quarter.
Arthur Tan, IMI president and chief executive officer, said that the firm continues to grow its topline and record a profit despite the unbalanced growth of the global economy.
“While we are affected by the slowdown in China, we take advantage of opportunities in regional manufacturing in North America and Europe,” he added.
IMI continues to expand its operations in Bulgaria and Mexico to accommodate additional orders from its customers in the automotive sector, while it started to consolidate its operations in China to lessen the impact on its bottomline.
“Our diversification strategy is doing us good in these volatile times,” Tan said.
IMI’s China and Singapore operations accounted for 35 percent of the total first-half revenues, or $122.2 million, a decline of 9 percent year-on-year primarily from reduced sales in the telecommunication infrastructure segment.
Operations in Europe and Mexico recorded $117.1 million in combined revenues, an increase of 37 percent year-over-year from the continued expansion of the company’s automotive business.
IMI’s Philippine operations, meanwhile, posted $88.4 million in revenues, an 11-percent year-on-year growth because of strong programs in the computing, consumer and industrial segments.