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IMI swings to $9-million income

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AYALA-LED Integrated Micro-Electronics, Inc. (IMI) returned to profit in the third quarter as its operations started picking up after the coronavirus-related lockdowns were eased.

In a statement on Thursday, the electronics manufacturer said its attributable net income stood at $9.11 million in the July-to-September period, a turnaround of the $5.33-million attributable net loss it saw a year ago.

It saw a 3% revenue climb to $312.44 million, supported by improving demand in the automotive and industrial sectors, along with the growth of the medical sector.

The company likewise booked foreign exchange gains of $1.58 million, reversing foreign exchange losses of $1.32 million last year. Its bottomline accounted for a $2.4 million one-off gain.

On a quarter-on-quarter basis, IMI’s revenues grew 42% because of better profit margins of 9.7%. The company attributed this growth to the increasing utilization of fixed overhead and improving manufacturing efficiency.

“As we had expected, the 3rd quarter of 2020 marked the beginning of IMI’s rebound. With industry forecasts showing sustainable improvement, IMI’s commitment to disciplined execution will keep us on this path towards greater profitable growth,” IMI President and CEO Arthur R. Tan said in the statement.

For the nine months beginning January, IMI posted an attributable net loss of $1.6 million, which improved 64% from $4.48 million in the same period in 2019.

Revenues were down 16% to $788.62 million, but foreign exchange gains of $1.41 million against last year’s foreign exchange losses of $3.06 million helped improve its bottomline.

“IMI’s diverse expertise across multiple business segments, along with our wide geographical footprint, has allowed us to rebound from the pandemic stronger and faster than market expectations,” Mr. Tan said.

“With the industry’s global bounce-back only beginning, there is still work to be done but our core long term strategies have positioned us well to take advantage of opportunities that the new normal brings,” he added.

IMI is under Ayala Corp.’s manufacturing arm AC Industrial Technology Holdings, Inc. It operates plants in the Philippines, China, Bulgaria, Czech Republic, Germany, Japan, Mexico, Serbia, the United Kingdom, and the United States.

Shares in IMI at the stock exchange closed at P6.78 apiece on Thursday, up 38 centavos or 5.94% from the last session. — Denise A. Valdez

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