IMI nets $17M

IMI chief executive officer Arthur Tan

Ayala-led electronics manufacturer Integrated Micro-Electronics Inc. (IMI) grew its first semester net profit by 14 percent to $17 million as recent acquisitions and expansion programs boosted revenues.

Six-month revenues rose by 22 percent year-on-year to $501 million, IMI said in a regulatory filing on Friday.

The first half performance was attributed by the company to its continuing focus on its current core markets in the automotive and industrial segments.

“We stand on the brink of a technological revolution that will vitally modify the way of life. The global auto industry is about to undergo a significant transformation gearing towards the development of an electric and automated future,” IMI chief executive officer Arthur Tan said.

“Revenues from Europe and Mexico operations climbed 12 percent year-on-year to $171.5 million in the first half of 2017 driven by ongoing capacity expansions and new programs. IMI Bulgaria was recently recognized as the second most profitable company in the machines sector in Bulgaria while Mexico recently received the Jalisco Export Achievement award,” he said.

The company’s China operations posted $127.5 million in revenues, down by 2 percent year-on-year, due to the impact of soft market demand for network and wireless products and the delay of 5G technology. IMI made inroads into China’s electric vehicle market after one of its customers in the Chengdu operations won a public electric bus project.

Revenues out of IMI’s electronics manufacturing service (EMS) operations in the Philippines increased by 2 percent to $111.9 million due to the automotive camera and industrial businesses. IMI Philippines recently started operations on motorcycle manufacture and assembly, a joint venture with KTM AG, an Austrian motorcycle company. As expansion continues, the company expects to engage more local suppliers for the assembly plant.

Newly acquired companies, Via Optronics GmbH (VIA) and Surface Technology International Ltd. (STI Ltd.), delivered $72.5 million in revenues, with one-month contribution from STI.

Gilles Bernard, IMI president and chief operating officer, said: ”We are now seeing acceleration in growth coming from our new businesses. We are projecting an aggregate of $475 million won businesses as we expand our capabilities in the automotive and industrial sectors. Other notable wins in the second quarter include automotive displays for our site in Czech Republic, automotive lighting and body control systems in Bulgaria, expansion of power module business in Philippines and IoT (internet of things) security tracker in China.”