IMI slumps to loss in 3rd quarter
INTEGRATED Micro-Electronics, Inc. (IMI) slumped to a net loss in the third quarter as it continued facing a global slowdown in its main market segments.
The Ayala-led manufacturing firm reported yesterday an attributable net loss of $5.33 million in the three months ending September, a turnaround from the $9.78 million attributable net income it posted in the same period last year.
Revenues in the three-month period declined 11% to $303.88 million, alongside an 8% drop in cost of sales to $281.74 million.
Year to date, IMI’s attributable net income was slashed to $451,000 from $41.35 million last year. Revenues in the three quarters slipped 7% to $939.57 million, while cost of sales dropped 5% to $860.48 million.
In a statement, the company pointed to the industry slowdown and various geopolitical issues that dragged its performance during the period.
“A lingering contraction in the automotive space, particularly in China, has brought down customer demand forecasts that led to challenged margins as new manufacturing lines are temporarily underutilized,” IMI said.
“China’s domestic market challenges prove to be the biggest drag, with IMI’s factories in the region showing a 22% decline versus the same period in 2018,” it added.
IMI said its wholly owned businesses posted a revenue of $755.2 million during the period, down 3% from last year.
Revenues from Via Optronics and STI Enterprises, Ltd. also went down 20% to $184.4 million due to production delays in the company’s consumer laptop business and political tensions in United Kingdom.
However, IMI Chief Executive Officer Arthur R. Tan believes the company is strong enough to power through the “cyclical nature of the industry.”
“Despite market challenges and geo-political uncertainties, technology and electronics remain to be the biggest drivers in the future of society. We remain committed to our long-term strategy of establishing ourselves in emerging technology platforms,” he was quoted in a statement as saying.
“I am confident that we have the right strategies in place, and that our experience, technological flexibility, and wide global footprint will enable us to seize the many opportunities ahead despite the headwinds affecting the entire industry,” he added. — Denise A. Valdez