IMI net income up 86% to $31.6 million in first half of 2018

MANILA, Philippines — Net income of Ayala-led Integrated Micro-Electronics Inc. (IMI) surged by 86 percent in the first semester from a year ago as it gained from the sale of a property in China and on the back of higher revenues.

In a statement yesterday,  IMI said its net earnings reached $31.6 million from January to June, up from the $17 million a year ago.

Net profit for the first half included the net gain of $11 million following the completion of shares sale transaction related to the transfer of the firm’s Liantang facility to the new Pingshan facility in Shenzhen.

The firm also recorded a higher net income after posting a 33 percent growth in revenues which reached $668.8 million as of end-June from the previous year’s $501 million.

Revenues from acquired businesses reached $154.2 million in the first half.

In particular, VIA Optronics which provides optical bonding and display solutions, generated $100.3 million in revenue as of end-June, 51 percent higher than a year ago, buoyed by top customer in the consumer segment.

STI which provides electronics design and manufacturing solutions, meanwhile, reported revenues of $53.9 million in the first six months.

Revenues from operations in Europe grew by 29 percent year-on-year to $170.1 million driven mainly by automotive businesses, while revenues from Mexico posted a 17 percent increase year-on-year to $46.9 million despite delays in the mass production of new projects.

Revenues from China operations rose 27 percent year-on-year to $162.1 million following the ramp up of new industrial applications and automotive platforms.

Philippine operations contributed $136 million to total revenues which went up five percent year-on-year, driven by the automotive camera business and new industrial applications while being offset by the declining demand in the security and medical device business.

IMI outlook is positive for the rest of the year.

“We are confident that the recent US-China tariff talks and the Brexit issue will have a minimal effect on our business. Our China to US and UK (United Kingdom) to EU (European Union) exports only account for about four percent of IMI’s group revenues. Our global operating sites that are qualified to the same standards are capable of enabling a smooth transfer of business across locations,” IMI chief executive officer Arthur Tan said.

He said the EU and China markets are growing significantly.

IMI president and chief operating officer Gilles Bernard said the company expects sales growth from new projects.

“The increasing demand within the electronics marketplace combined with the competition among large companies have driven passive components to short supply. Significant extra costs in supply chain were also incurred to warrant the deliveries to the automotive market. These issues were particularly sensitive during the first half of 2018 and are expected to remain for the rest of the year as IMI anticipates significant sales growth coming from new projects awarded in previous years,” he said.