Ayala electronics unit earns less in Q1

MANILA, Philippines - Earnings of Integrated Micro-Electronics Inc. (IMI) of the Ayala conglomerate was weighed down by higher costs and lower utilization of its facilities in China in the first quarter, the company said.

In a regulatory filing, the electronics manufacturing services (EMS) provider said its profits sank to $253,000 from $853,900 in the same period last year.

The lower income was “primarily due to lower capacity utilization in its China facilities,” IMI said.

But consolidated revenues rose 8.5 percent to $164.8 million in the first three months of 2013, driven by business expansion in Europe and the Philippines.

“We managed to grow our business and remain profitable in the face of a persistent global economic crisis,” IMI president and CEO Arthur Tan said.

“Worldwide demand for electronic products remains challenged as the euro zone, the US, Japan and China tread uncertain economic waters,” he added.

However, IMI benefited from improved performance in its European, North American and Philippine operations.

In particular, IMI operations in China and Singapore contributed $56.7 million in combined revenues, down 8.1 percent from a year ago “due primarily to reduced sales to a customer in the telecommunication infrastructure market.”

But operations in Europe and Mexico recorded a 34-percent spike in combined revenues to $54.9 million with the expansion of its automotive business.

Revenues from the Philippine operations jumped 11.5 percent to $42.6 million “because of strong programs in the computing, consumer, and industrial segments,” IMI said.

IMI subsidiary PSi Technologies Inc. posted a 4.8-percent increase in revenues to $10.4 million.

“With signs that semiconductor companies are replenishing their inventories, their sales will likely continue to grow in the months ahead,” Tan said.

This trend augurs well for the electronics manufacturing sector since the semiconductor sector’s performance is a harbinger of what’s in store for makers of electronic products, he said.” 

IMI aims to become a billion-dollar company in terms of revenues in 2016 by serving more energy, mobility, power, healthcare, industrial and security firms.

The 20th largest provider of electronics manufacturing services (EMS) in the world will spend $18 million this year to expand regional operations.

Last year, IMI recorded a 15-percent growth in consolidated sales revenues to $661.8 million from $575.5 million a year ago “on acquisitions as well as business expansion of key customers.”

Its consolidated income grew more than 60 percent to $5.4 million from $3.3 million due to acquisitions and new customers.