IMI nets $28M

Ayala-led Integrated Micro-Electronics Inc. (IMI) booked a 2-percent decline in net profit last year to $28.1 million due to softer business out of China and the Philippines and some acquisition-related costs.

IMI, a global manufacturing solutions company, last year grew revenue and operating income by 4 percent and 13 percent, respectively, amid a challenging environment in electronics manufacturing.

“Despite challenges in the global economic environment and the ongoing portfolio mix changes from our Asian operations, we were able to accomplish a positive growth and improved gross profit margin by 50 basis points to 12 percent,” IMI’s president and chief operating officer Gilles Bernard said in a disclosure to the Philippine Stock Exchange on Thursday.

Consolidated revenues reached $843 million (P40 billion) for 2016. Excluding acquisition, IMI’s revenues went up by 1 percent driven by Europe and Mexico operations reporting combined revenues of $308 million for a 15 percent growth year-on-year.

The net income of $28.1 million (P1.3 billion) was slightly lower by 2 percent year-on-year “owing to transaction and financing costs related to acquisitions and foreign exchange impact of the renminbi,” the company reported.

IMI’s company’s operations in Asia delivered lower growth as a result of China’s slower economic activity and the company’s strategic decision to disengage from one consumer electronics business. In addition, its Philippine operations also drew away from the declining segment in computing peripherals, driving lower growth.

China operations posted $261.4 million in revenues, down by 6 percent from last year. The Philippines’ electronics services operations delivered $221 million, 2 percent lower than last year, while PSi Technologies, IMI’s semiconductor assembly and test subsidiary, posted $33 million in revenues, down 2 percent year-on-year.