IMI earnings plunge 94% in Q1

MANILA, Philippines — Integrated Micro-Electronics Inc. (IMI) reported a 94 percent decline in its first quarter net income to $335,000.

Revenue was flat at $323 million due to the slowdown in global markets.

Gilles Bernard, IMI president and chief operating officer, said IMI remains committed to delivering high quality products despite the unfavorable business climate.

“Aside from elevated raw materials costs, tight supplies of electronics components raised the need for expedited production cycles and expensive freight deliveries to maintain IMI’s top-level standards.

As we continue to address the short- term challenges in our supply markets, we remain aggressive in executing our efficiency initiatives to align our cost structure with uncertain external environment and ensure the stability of all our businesses,” Bernard said.

IMI continues to grow its target business segments — automotive, industrial, and aerospace which comprised 77 percent of the total revenue for the quarter.

Arthur Tan, chief executive officer of IMI, said the company has a long and healthy relationship with its key customers which has enabled it to mitigate the challenging business environment.

Tan said IMI had utilized $180 million for capital expenditures in the past three years, a significant portion of which was spent to support development of high-tech businesses and the opening of new operating sites that expanded its manufacturing footprint to Serbia and Japan.

IMI is the manufacturing arm of AC Industrial Technology Holdings Inc., a whollyowned subsidiary of Ayala Corp.

It ranked 17th in the list of top 50 EMS providers in the world by the Manufacturing Market Insider based on 2018 revenues.