IMI profits rise on one-time gains

Published February 10, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

Integrated Micro-Electronics, Inc. (IMI), the manufacturing arm of Ayala Corporation, posted a 34 percent jump in net income last year to $45.5 million, propelled by favorable non-operating items.

In a disclosure to the Philippine Stock Exchange, IMI said that, operationally and excluding foreign exchange impact, net income decreased 21 percent to $25.8 million.

The reported net income includes non-operating items such as net gain on the sale of a China entity and reversal of contingent consideration related to the STI acquisition, partially offset by impairment of China goodwill, mark-to-market losses on put options and other one-off transaction costs.

The effect of the RMB and EUR depreciation and higher interest rates also added downward pressure.

IMI’s consolidated revenues rose 24 percent to $1.35 billion last year.
The firm’s traditional business delivered $1.04 billion revenues, a growth of 16 percent while recently acquired companies, VIA and STI, accelerated further with a growth of 61 percent year- on-year posting combined revenue of $312.4 million.

IMI benefited from new programs in the industrial and automotive segments which grew 41 percent and 21 percent, respectively, while strong activities firmed up for strategic opportunities in aerospace.

According to IMI Chief Executive Arthur Tan, “2018 was a challenging yet exciting year. Although the company was affected financially by the global component shortage issue, we are confident that the choices we made years ago were the right decisions.”

He added that, “we remain committed in our strategy to develop complex and high value products that allow us to remain relevant in our focused target markets.”

Also in 2018, the company’s business pipeline expanded with $320 million new project awards, 72 percent of which are for automotive applications.

“This drive to be a critical contributor to the digital car of tomorrow and other technological breakthroughs will enable us to deliver and meet increasing expectations of our stakeholders,” Tan said.