IMI Q2 attributable profit jumps

By Arra B. Francia, Reporter
AYALA-LED Integrated Micro-Electronics, Inc. (IMI) saw its attributable profit jump by 211% in the second quarter of 2018 following a one-time gain from the sale of its property in China.
In a disclosure to the stock exchange on Thursday, the listed global manufacturing firm said net income attributable to equity holders of the parent rose to $26 million in the April to June period, higher than the $8.34 million it generated in the same quarter a year ago.
IMI attributed the increase to the completion of the sale transaction to transfer its Liantang facility to the new Pingshan facility in Shenzhen. This gave the company a net gain of $11 million. Excluding one-offs, the company’s operating income would have increased by 28%.
Revenues for the period climbed 29% to $343 million, as the company benefited from the performance of both its core businesses and recently acquired entities.
This brought the company’s attributable profit for the first half of 2017 to $31.6 million, 85% higher than the $17 million it recorded a year ago, on the back of a 33% uptick in revenues to $668.8 million.
Broken down, IMI’s operations in Europe contributed $170.1 million in revenues, or 29% higher year-on-year. Operations in Mexico generated a 17% increase in revenues to $46.9 million, amid delays in the mass production of its new projects.
China revenues stood at $162.1 million or 27% higher from the same period a year ago, as the company benefited from new industrial application and automotive platforms in the country.
IMI’s Philippine operations contributed revenues worth $136 million, growing by only 5% after the decline in demand for security and medical device business dampened the growth of the automotive camera business and new industrial applications.
Meanwhile, the company’s acquired business in the recent years provided $154.2 million in revenues. This includes $100.3 million from Germany-based VIA Optronics and $53.9 million from United Kingdom’s STI Enterprises.
For the remaining half of the year, the company expects to see continued sales growth from new projects it secured in previous years. However, it also expects challenges such as competition among large companies and higher costs.
The company meanwhile downplayed the effects of the looming trade war between the United States and China on its global business, saying revenues from the markets are only a small part of the group’s revenues.
“We are confident that the recent US-China tariff talks and the Brexit issue will have a minimal effect in our business. Our China to US and UK to EU exports only account for about 4% 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 in a statement.
Shares in IMI climbed 40 centavos or 2.88% to close at P14.28 each at the stock exchange on Thursday.