Ayala-led IMI pares losses but cost constraints linger

MANILA, Philippines – Integrated Micro-Electronics Inc. (IMI), the semiconductors and electronics manufacturing arm of the Ayala group, narrowed losses in 2022 while revenues expanded by 8 percent to $1.4 billion.

“Despite the ongoing component shortage and supply chain challenges in 2022, IMI wholly-owned subsidiaries continued to perform,” the company said in a statement.

IMI said losses for the year hit $6.8 million, lower than its 2021 loss of $10.6 million.

Earnings were bolstered by fourth quarter revenues of $367 million, an increase of 4.5 percent. Gross profit during this period stood at $33.3 million for a 9.1 percent margin.

“As the world moves to normalization after the pandemic, several macroeconomic challenges still lingered that significantly affected the financial performance of IMI,” company president Jerome Tan said in a statement.

“The Russia-Ukraine war led to elevated energy prices and further constrained the competitive labor market in Europe,” he said.

“China’s firm stance on its zero-COVID policy in 2022 hampered operations in the region. Global freight costs have also remained elevated, especially in the first half of the year. Amid all these challenges, IMI management teams worked tirelessly to ensure that we still delivered our commitments to our manufacturing partners,” he added.

IMI noted that subsidiaries Via optronics and STI Ltd. were also impacted by supply shortages for markets such as aerospace and defense.

It said the two companies were “in discussions with their customers to realign pricing to consider the elevated costs of raw materials, freight and utilities.”

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