IMI losses narrow on higher demand

Published February 25, 2021, 9:57 AM

by James A. Loyola

Integrated Micro-Electronics, Inc. (IMI), the manufacturing arm of the Ayala Group, reported that its net loss narrowed to $3.5 million last year from $13.2 million in 2019 on the back of a strong fourth quarter.

Photographer: SeongJoon Cho/Bloomberg

In a disclosure to the Philippine Stock Exchange, IMI said revenues dipped to $1.14 billion in 2020 from $1.25 billion in 2019.

However, with demand for electronics products continuing to rise, IMI achieved its highest quarterly performance with a revenue record of $347 million in the fourth quarter of 2020, an increase of 12 percent over the same period in 2019.

The strong rebound of IMI’s focus segments, along with improved manufacturing efficiency, drove fourth quarter gross margin levels from 7.4 percent in 2019 to 10.3 percent in 2020.

Net income amounted to $8.4 million for the fourth quarter. 

Wholly-owned businesses grew 6 percent year-on-year to US$262 million of revenue in the fourth quarter. The global demand for security and I-o-T products boosted industrial revenue while mobility-focused European and North American facilities benefitted from the rapid rise of global automotive production.

In addition, IMI’s growing foothold in the profitable medical segment also led to increased higher margin sales for its manufacturing plants in Asia.

To mitigate the effects of the pandemic, IMI successfully collaborated with local government units to secure various forms of employee related subsidies in Bulgaria, China, Czech Republic, France, Mexico, Serbia, and Singapore. 

Non-wholly owned subsidiaries Via Optronics and STI Ltd. finished the year with $86 million of combined revenues in the fourth quarter, a growth of 36 percent compared to the same period in 2019.

Via Optronics continues its shift towards automotive display solutions by partnering with leading manufacturers in both traditional and electric vehicle spaces.

Meanwhile, STI Ltd is buoyed by the continued growth of its medical segment and recovery of the aerospace and defense markets.