MANILA, Philippines — Integrated Micro-Electronics Inc. (IMI), the listed Ayala-led electronics company, reported a net income of $5.8 million in the first half, more than three times lower than the $31.6 million recorded a year ago.
In a disclosure, IMI said the decline was due to the impact of the slowdown in the global economy and the downturn in the automotive market.
However, IMI chief executive officer Arthur Tan expressed confidence that the company would hurdle the headwinds as it positioned itself as a key player in the “electronics supercycle.”
“Several electronics segments are undergoing major overhauls as they shift to next generation platforms. From autonomous and electric vehicle technologies, to 5G infrastructure in telecom, and to power module applications required across all segments, IMI is entrenched and ready to serve all these emerging technologies,” Tan said.
IMI closed the first six months of 2019 with consolidated revenues of $636 million, down five percent.
IMI said profitability remains challenged by a lower volume demand.
“A significant portion of our core revenues through our Bulgaria and Czech Republic operating sites were also held back by the depreciation of the euro against the US dollar,” IMI said.
Despite the headwinds, IMI president Gilles Bernard said the company would continue to push forward in the coming years to address demand.
“With significant investments for new technology projects made in the past years, IMI remains ready to serve the upcoming surge in the global electronics market. Unfortunately, political and economic market factors are currently holding back the revenue growth, while also affecting the profitability of the company,” Bernard said.
IMI is the manufacturing arm of AC Industrial Technology Holdings, a wholly owned subsidiary of Ayala Corp.
It is among the leading global manufacturing solutions expert in the world.