AYALA-LED Integrated Micro-Electronics, Inc. (IMI) grew its attributable profit by 38% in the third quarter of 2018.
In a disclosure to the stock exchange on Tuesday, the listed firm said net income attributable to the parent went up to $9.78 million in the three months ending September, from the $7.06 million it recorded in the same period a year ago.
IMI’s nine-month attributable profit surged 72% to $41.35 million, which includes favorable one-off items such as the sale of its Shenzhen entity in China and the reversal of contingent liability for its acquisition of the United Kingdom’s STI Enterprises Limited. The company meanwhile recorded goodwill following the acquisition of its China facilities.
Without the one-off items, IMI’s net income would have stood at $28.9 million, 4.7% higher than its adjusted net income of $27.6 million in the same period a year ago. The company said it was affected by the weaker Chinese yuan and euro which led to foreign exchange losses.
Revenues for the third quarter meanwhile rose by 16% to $342.71 million, bringing the nine-month figure 27% higher to $1.01 billion.
The company noted that gross profit margin drop to 10.6% from 11% last year, weighed down by higher material, production, and logistics costs due to global component shortage.
“The fast-paced evolution of automotive and industrial segments resulting to unexpected demand for components is creating pressure in constrained markets. As we face the current challenges, IMI continues to strive in setting the bar to key technological advancements and remain ahead of the curve,” IMI Chief Executive Officer Arthur Tan said in a statement.
IMI said it recently inaugurated its facility in Serbia which will enhance its manufacture of electronic car components. The company is banking on the factory to improve its position in the automotive electronics manufacturing services (EMS) market.
Aside from its core business, the company is venturing into copper-based metal mesh touch sensors to boost its portfolio of differentiated and value-added sensor technology.
“While the EMS industry faces unpredictable market situations, IMI continues to boost production output and is in control of managing expectations from our valued customers. We continue to invest and take risks in venturing into new fields while keeping close track of our core businesses trajectory,” IMI President and Chief Operating Officer Gilles Bernard said.
Shares in IMI dropped 0.37% or four centavos to close at P10.74 each at the stock exchange on Tuesday. — Arra B. Francia