IMI nets $29M

AYALA-led electronics manufacturing services provider Integrated Micro-Electronics Inc. posted a net profit of $28.8 million last year, flat from the level in 2014, as global headwinds intensified.

“Against the backdrop of a challenging global marketplace, we expanded operating margin by 114 basis points and generated $49.8 million of cash flow from operations by focusing on high-margin auto and industrial segments and continued productivity improvements,” IMI president and chief executive officer Arthur Tan said in a press statement on Wednesday.

IMI identified volatility in the foreign currency markets and weakness in China’s economy as the key factors behind the flat performance versus 2014, when net profit stood at $29.1 million.

In 2015, the company’s consolidated revenues slipped by 4 percent to $814.4 million (or P37 billion), mainly attributed to a weak euro and the downturn in the computing and telecommunications segments.

Excluding the impact of changes in currency exchange, IMI reported that automotive revenues had climbed by 21 percent during the year while total revenues had risen by 2 percent.

IMI said the revenue headwinds were offset strong volume growth in the automotive segment. In particular, its advanced driver assistance systems or ADAS programs (such as automotive camera programs) posted a 66 percent increase in revenues in 2015.

Operations out of China recorded $279.3 million in revenues last year, marking a 14 percent decline from the previous year as the 4G telecommunications network rollout in China reached its projected volume and the consumer electronics segment experienced a slowdown.

IMI’s Europe and Mexico operations recorded combined revenues of $267.4 million, flat from last year. The persistent weakness in the euro resulted in a 3 percent revenue decline for IMI’s Bulgaria and Czech Republic factories.

In Mexico, IMI revenues increased by 9 percent due to higher demand for plastic injection and assembly.

Overall revenues for IMI’s Europe and Mexico plants would have increased by 15 percent if not for the weak euro, the company estimated.

Meanwhile, IMI’s electronics manufacturing services operations in the Philippines posted $225.3 million in revenues, marking a 10 percent growth, due to a strong demand for automotive cameras and security and access control devices.

“We maintained profitability as we continue to make advances on the initiatives we started some five years ago– focus on high-margin segments, full integration of acquisitions, rationalization of costs, expansion of global footprint, and development of human capital and equipment,” Tan said.

“These strategic activities have increased our new business pipeline. We had 207 program wins in 2015, up from 155 in 2014. Moving forward, we will continue to expand in Bulgaria, Mexico and Philippines as our automotive business grows, and we will intensify our play in industrial and other growing segments,” Tan added.

Laguna-based IMI is one of the leading global providers of electronics manufacturing services (EMS) and power semiconductor assembly and test services. It has manufacturing facilities in Asia, Europe, and North America.

A subsidiary of Ayala Corp., IMI ranks 18th on the latest list of Manufacturing Market Insider for the top 50 EMS providers in the world based on the 2014 EMS-related revenues of companies.