INTEGRATED Micro-Electronics, Inc. (IMI)’s attributable profit plunged by 94% in the first three months of 2019, weighed down by higher input costs and the general slowdown of the global market.
In a regulatory filing, the Ayala-led electronics manufacturer said net income attributable to the parent reached $335 million from January to March 2019, significantly lower than the $5.56 million it generated in the same period a year ago.
Revenues were flat at $323.05 million, against $325.79 posted in the same period in 2018. The automotive, industrial, and aerospace segments all expanded for the quarter at a pace of 27% to $168 million, 10% to $68 million, and six percent to $13 million, respectively. These units account for about 77% of the firm’s total revenues.
In contrast, the consumer segment dropped by 59% while the telecom unit fell by 12%, dragged by delays in new project awards and the economic slowdown in China.
“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,” IMI President and Chief Operating Officer Gilles Bernard said in a statement.
The listed firm noted that margins also slimmed to 9% from 10.6% during the quarter, citing geopolitical risks.
“Margins remain constrained by global market slowdown due to the fallout from the trade wars, political uncertainty in the UK and the ongoing electronic component shortage,” the company said.
IMI Chief Executive Officer Arthur R. Tan expects their relationships with key customers to help them against financial headwinds amid the global component issue.
“Having positioned ourselves as a top provider of high complexity technology solutions, we are poised to rebound quickly on both revenue and profitability aspects as our investments in the past years come to full utilization,” Mr. Tan was quoted as saying in a statement.
The company has so far spent $180 million in capital expenditures in the last three years, bulk of which supported the development of its high-tech businesses and the opening of new operating sites in Serbia and Japan.
Incorporated in 1980, IMI is a subsidiary of AC Industrial Technology Holdings, Inc. Its products and services include design and engineering solutions, supply chain solutions, manufacturing solutions, business models capabilities and solutions, subsidiary in power semiconductor assembly and test, and global materials and supply chain management.
Shares in IMI fell 9.95% or P1.24 to close at P11.22 each at the stock exchange on Monday. — Arra B. Francia
