IMI narrowed losses in Q1
MANILA -The Ayala Group’s electronics manufacturing arm, Integrated Micro-Electronics Inc. (IMI), sharply narrowed losses in the first quarter of 2023 after raising prices while keeping costs in check.
Losses from January to March this year fell 63 percent to $749,000 while revenues during the period rose 4 percent to $347 million, a stock exchange filing on Tuesday showed.
“By adjusting our selling prices in collaboration with our customer partners, as well as continued cost reduction initiatives, we are gradually improving the financial performance of the company,” IMI president Jerome Tan said in a statement.
IMI specializes in quality electronics for a variety of industries, such as the automotive, industrial electronics and aerospace segments. It has 20 manufacturing plants across 10 countries, including the Philippines, China, United States, and Czech Republic.
“Our management teams implemented programs that significantly reduced labor and overhead costs in our operating sites while further driving manufacturing efficiency. We continue to address the issues related to elevated raw material costs and competitive labor markets, as we remain vigilant of other uncertainties in the industry,” he added.
IMI said margins improved as it adjusted selling prices, however, the manufacturing segment was still contained by a component shortages that started during the global health crisis.
Gross margins last year rose 76 basis points “as selling prices are now better aligned with the realities of operating costs in the manufacturing environment”, IMI said.
“Overhead cost metrics are further helped by topline growth as we see better utilization of IMI manufacturing facilities,” it added.
IMI said VIA Optronics and STI Ltd. face significant headwinds in their market segments but still manage but cut their net loss from $5.3 million in 2022 to $3.4 million during the first quarter of the year.
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