IMI halves net loss to $49.8M as restructuring continues

MANILA, Philippines – Integrated Micro-Electronics Inc. (IMI), the electronics manufacturing arm of the Ayala Group, slashed its net loss last year by more than half to $49.8 million amid restructuring plans meant to make it profitable again.

In a stock exchange filing on Monday, IMI said revenues dipped by 17 percent to $1.1 billion as its subsidiaries “continued to be affected by prolonged recovery challenges” in the automotive and industrial markets.

This resulted in a 12-percent decline in sales, it added.

READ: Ayala keen on keeping IMI

Still, the company attributed its lower net loss to a “comprehensive restructuring initiative” that is seen to “align with market dynamics and to position the company for sustainable profitability.”

One-time expenses due to closing and rationalizing activities in California, Malaysia, Singapore, Japan and Chengdu resulted in a $24.6-million core net loss.

Subsidiary VIA Optronics also reported a $13.3-million loss due to nonrecurring expenses, which included costs related to delisting from the New York Stock Exchange.

“While restructuring efforts resulted in one-time expenses, they were essential to creating a leaner, more agile organization,” IMI CEO Louis Hughes said in a statement.

‘Positive results’

“We are already starting to see positive results from our initiatives, and we are looking forward to seeing the full effect of these actions in the years to come,” Hughes added.

This came after Ayala Corp. chief financial officer Alberto de Larrazabal told reporters they had expected IMI to swing back to profitability this year.

He pointed out that efforts to reduce costs and lower inventory levels were ongoing, adding they would focus on improving IMI’s sales.

VIA, however, will likely continue to navigate a challenging business environment this year, he said.

De Larrazabal also clarified they were “not entertaining any offers” from investors willing to buy IMI.

The company was founded in 1980 as a joint venture between Ayala and Resins Inc., an integrated circuit assembler.—