Integrated Micro-Electronics, Inc. (IMI), the manufacturing unit of the Ayala group, reported a turnaround in the third quarter of 2020 with a net income of $9.6 million from the net loss of $5.55 million in the same period last year.
In a disclosure to the Philippine Stock Exchange, the firm said earnings in the third quarter this year included a $2.4 million one-off gain.
Leading the company’s rebound are IMI’s target segments automotive, industrial, aerospace, and medical.
Year-to-date September revenue reached $789 million, down from $939.57 million in the same period last year, with net loss for the year rising to $11.9 million from a loss of $4.03 million in the comparative period of 2019.
IMI booked revenues of $312 million in the third quarter of 2020, higher than the $303.88 million registered in the same period last year, as operations normalized across all manufacturing facilities.
The firm said it achieved 42 percent quarter-on-quarter growth, exceeding pre-pandemic revenue levels with a 3 percent improvement versus the third quarter of 2019.
Increased utilization of fixed overhead and improved manufacturing efficiency led to a significant expansion in gross profit margin from 6.4 percent in the first half to 9.7 percent in the third quarter.
“IMI’s diverse expertise across multiple business segments, along with our wide geographical footprint, has allowed us to rebound from the pandemic stronger and faster than market expectations,” said IMI President Arthur Tan.
He added that, “With the industry’s global bounce-back only beginning, there is still work to be done but our core long term strategies have positioned us well to take advantage of opportunities that the new normal brings.”
“As we had expected, the 3rd quarter of 2020 marked the beginning of IMI’s rebound. With industry forecasts showing sustainable improvement, IMI’s commitment to disciplined execution will keep us on this path towards greater profitable growth,” Tan noted.