IMI earnings surge 35% to $15.2 M in H1

MANILA, Philippines - Ayala-led Integrated Micro-Electronics Inc. (IMI) reported a 35 percent growth in its net income in the first half of the year to $15.2 million.

Officials of the electronics manufacturing services (EMS) attributed the higher income to operational improvements, enhanced portfolio mix and cost saving measures.

Arthur Tan, IMI president and chief executive officer, said the company posted higher profits despite foreign exchange losses during the period.

 “Despite foreign exchange headwinds, we managed to post an increase in our profit in the first half of the year. We kept our focus on higher margin segments as we persistently improved manufacturing line productivity,” Tan said.

First half revenues, however, declined by three percent year on year to $416.3 million, which officials attribute to the softness of the euro coupled with the slowdown in demand for mature products in the computing sector.

Excluding the impact of foreign exchange losses, revenues would have been 2.4 percent higher, Tan said.

“The company’s Europe and Mexico operations recorded combined first half revenues of $137.6 million, at par with last year, as the persistent weakness of the Euro has subdued the otherwise robust growth of the automotive segment,” IMI also said.

On the other hand, IMI China’s revenues fell nine percent year on year to $146.1 million due to lower volume for its telecommunications infrastructure programs.

In the Philippines, EMS operations generated revenues of $109.5 million, relatively flat from last year as the growing services for automotive segment and backlog recoveries from industrial customers have offset the anticipated slowdown in demand for computer peripherals.

Tan said the company is confident it would benefit from the positive outlook for the advanced economies for the rest of the year and 2016. “Our healthy pipeline will soon translate to new businesses, especially in the automotive and industrial segments,” he said.

IMI is one of the leading global providers of electronics manufacturing services (EMS) and power semiconductor assembly and test services with manufacturing facilities in Asia, Europe, and North America.

It serves diversified markets that include those in the automotive, industrial, medical, telecommunications infrastructure, storage device, and consumer electronics industries.