AYALA-LED Integrated Micro-Electronics, Inc. (IMI) reported a 34% increase in attributable profit for 2018, due to net gains from the sale of a China unit and other one-off transactions.
In a disclosure to the stock exchange on Thursday, IMI said net income attributable to the parent reached $45.5 million, higher than the $34 million it posted in the same period a year ago.
IMI attributed the increase to non-operating items, including a net gain on the sale of a China entity and the reversal of contingent consideration related to its acquisition of United Kingdom-based electronics manufacturer STI Enterprises, Limited.
The company, however, noted that operationally and excluding foreign exchange impact, net income fell by 21% to $25.8 million in 2018. Effects of the depreciation of the Chinese yuan and the euro, alongside higher interest rates, also added downward pressure on the firm’s bottomline.
“2018 was a challenging yet exciting year. Although the company was affected financially by the global component shortage issue, we are confident that the choices we made years ago were the right decisions,” IMI Chief Executive Officer Arthur Tan said in a statement.
“We remain committed in our strategy to develop complex and high value products that allows us to remain relevant in our focused target markets.”
Consolidated revenues, meanwhile, grew by 24% to $1.35 billion for the full year, versus $1.09 billion. Its traditional business alone generated a 16% increase in revenues to $1.04 billion. Its recently acquired company, STI and Germany’s VIA Optronics, contributed $312.4 million, 61% higher year on year.
Despite challenges to improve its bottomline, IMI said its business pipeline grew following $320 million in new project awards. Of this, 72% are for automotive applications.
“This drive to be a critical contributor to the digital car of tomorrow and other technological breakthroughs will enable us to deliver and meet increasing expectations of our stakeholders,” Mr. Tan said.
IMI President and Chief Operating Officer Gilles Bernard also added that building solid relationships with customers and suppliers will help solve the imbalance between supply and demand in the business.
“We have to establish realistic targets with positive thinking to stay ahead of the game,” Mr. Bernard said in a statement.
IMI said it spent $65 million in capital expenditures in 2018 to build more complex manufacturing capabilities. The allocation was funded by proceeds from its stock rights offering worth P5 billion last year.
Shares in IMI shed 22 centavos or 1.62% to close at P13.38 each at the stock exchange on Thursday. — Arra B. Francia