IMI Continues to Endure Industry Slow Down
October 30, 2019, Laguna, Philippines — Integrated Micro-Electronics, Inc. (IMI) achieved US$939.6 million of consolidated revenues in the first nine months of 2019, seven percent lower than the same period last year. The persistent slowdown in IMI’s main market segments, compounded by various geo-political issues have hindered growth.
A lingering contraction in the automotive space, particularly in China, has brought down customer demand forecasts that led to challenged margins as new manufacturing lines are temporarily underutilized. A gross profit of US$79.1 million representing an 8.4% margin, is a 26 percent decline versus the same period last year. The company finished the first three quarters of 2019 with US$451 thousand of net income which includes a provision for non-recurring deferred expenses of US$5.2 million. New business wins from the pipeline remain healthy at US$295.0 million year to date.
IMI’s wholly-owned businesses had US$755.2 million of revenues, a three percent reduction from the same period last year. China’s domestic market challenges prove to be the biggest drag, with IMI’s factories in the region showing a 22 percent decline versus the same period in 2018. Despite the global slowdown, the company’s Mexico and Bulgaria/Serbia operations showed a growth of 66 percent and three percent, respectively.
Via Optronics and STI Enterprises, Ltd. posted US$184.4M of revenues, a 20 percent decline against the same period last year. The delays in the production of the next generation computer processors affected VIA’s consumer laptop business. The company remains committed to serve the market as the segment rebounds and rolls out new products by the end of the year.
Continued political tensions in the UK depressed revenue growth in STI, down by 11 percent. However, the company expects business to improve, having won US$69.0 million of new business projects in the first nine months of 2019.
Arthur Tan, IMI Chief Executive Officer, remains confident that IMI will continue to endure the cyclical nature of the industry. “Despite market challenges and geo-political uncertainties, technology and electronics remain to be the biggest drivers in the future of society. We remain committed to our long-term strategy of establishing ourselves in emerging technology platforms. IMI is deeply embedded in the world’s key megatrends: mobility, smart energy, and connectivity. I am confident that we have the right strategies in place, and that our experience, technological flexibility, and wide global footprint will enable us to seize the many opportunities ahead despite the headwinds affecting the entire industry.”
Gilles Bernard, IMI President and Chief Operating Officer recognizes the challenges of moving up the electronics value chain. “IMI’s vision of catering to deeply customized technology solutions provides a strategy for IMI to remain relevant in the electronics manufacturing value chain. The shift to high complexity products brings challenges today that we consider as great learning opportunities in steering the company forward. We have invested heavily in improving our technological capabilities and enriching our engineering talent across all our operating sites. IMI will continue to be a key player in driving the world’s technological advancement forward.”
Integrated Micro-Electronics Inc. (IMI), the manufacturing arm of AC Industrial Technology Holdings, Inc., a wholly-owned subsidiary of Ayala Corporation, is among the leading global manufacturing solutions expert in the world. IMI now ranks 17th in the list of top 50 EMS providers in the world by the Manufacturing Market Insider (March 2019 edition), based on 2018 revenues. In the automotive market, it is the 5th largest EMS provider in the world per New Venture Research.
IMI specializes in highly reliable and quality electronics for long product life cycle segments such as automotive, industrial electronics and more recently, the aerospace market.
From its 21 manufacturing plants across ten different countries, IMI provides engineering, manufacturing, and support and fulfillment capabilities to diverse industries globally.
For more information, visit www.global-imi.com.