AYALA-LED Integrated Micro-Electronics, Inc. (IMI) saw its attributable profit plunge 79% in the second quarter of 2019, weighed down by the lower demand for its new programs amid additional investments.
In a disclosure to the stock exchange on Thursday, the listed electronics firm posted a net income attributable to the parent of $5.45 million from April to June, lower than the $26.02 million it earned in the same period a year ago. Revenues also slipped 8.8% to $312.65 million.
This brought attributable profit for the first half to $5.78 million 82% lower year on year, after a 49% decline in revenues to $342.99 million.
The company attributed the decline to the slowdown of the global economy, a downturn in the automotive market, and geopolitical issues hounding key markets in China and the United Kingdom.
“Unfortunately, political and economic market factors are currently holding back the revenue growth, while also affecting the profitability of the company,” IMI President and Chief Operating Officer Gilles Bernard said in a statement.
IMI was further impacted by the depreciation of the Euro against the US dollar, affecting its operations in Bulgaria and Czech Republic.
Shares in IMI lost 3.16% or 30 centavos to close at P9.20 each at the stock exchange on Thursday. — Arra B. Francia
