IMI earns 1% less last year

MANILA, Philippines – Integrated Micro-Electronics Inc. (IMI) of the Ayala conglomerate ended 2015 with slightly lower profit due to the volatility in the foreign currency markets and weakness in China’s economy.

IMI said yesterday net income for 2015 reached $28.8 million, down one percent from $29.1 million in 2014.

“Against the backdrop of a challenging global marketplace, we expanded operating margin by 114 basis points and generated $49.8 million of cash flow from operations by focusing on high-margin auto and industrial segments and continued productivity improvements,” IMI president and chief executive officer Arthur Tan said.

The company’s consolidated revenues also dipped four percent year-on-year to $814.4 million due mainly to a weak euro and the downturn in the computing and telecommunications segments.

Excluding the impact of changes in currency exchange, IMI said total revenues rose two percent.

For its international operations, IMI said it recorded $279.3 million in revenues last year in China, a 14 percent decline from the previous year as the 4G telecommunications network rollout in the world’s second largest economy reached its projected volume and the consumer electronics segment experienced a slowdown.

IMI’s Europe and Mexico operations, meanwhile, recorded combined revenues of $267.4 million, flat from last year.

In Mexico alone, IMI said revenues climbed nine percent due to higher demand for plastic injection and assembly.

The persistent weakness in the euro, however, resulted in a three percent revenue drop for IMI’s Bulgaria and Czech Republic factories.

IMI said overall revenues for its Europe and Mexico plants would have increased 15 percent if not for the weak euro.

In the Philippines, IMI’s electronics manufacturing services operations posted $225.3 million in revenues, 10 percent higher from $204.9 million in 2014 fueled by a strong demand for automotive cameras and security and access control devices.