Ayala electronics unit earns $5 M in Q1 on improved int’l operations

MANILA, Philippines - Integrated Micro-Electronics Inc. (IMI), the electronics unit of the Ayala conglomerate, said its earnings surged in the first quarter on the improvement of operations in China, Europe and the Philippines.

In a disclosure, the leading worldwide provider of electronics manufacturing services (EMS) and power semiconductor assembly and test services said earnings spiked to $5 million in the first three months of the year from $0.3 million a year ago. Revenues rose 25 percent to $205.7 million from $164.8 million.

“With the improving performance of IMI China due primarily to increased demand from customers in the telecommunications infrastructure market, IMI continues on its rapid growth trajectory,” said IMI president and CEO Arthur Tan.

“Higher sales and improved production efficiency have amplified the company’s profits,” Tan added.  

In particular, IMI China accounted for 36 percent of IMI’s first quarter revenues. It recorded a 29-percent revenue growth to $73.2 million in the January to March period.

Given the expansion of the automotive business in IMI’s factories in Eastern Europe, the company’s operations in Europe and Mexico recorded a 22-percent jump in consolidated revenues to $66.9 million.

“Benefitting from its robust business in the storage device market, IMI Philippines posted $54.7 million in revenues, or a 29-percent year-on-year growth,” the listed company said.

Subsidiary PSi Technologies Inc. recorded $10.9 million revenues, up five percent from last year, driven by strong business with its major customers.

“Recoveries in the global markets and the electronics industry have bolstered our optimism for the rest of 2014,” Tan said.

IMI wants to take advantage of the $283.9-billion market for original equipment manufacturers and EMS. It allotted $27 million for its capital spending this year that includes the installation of a low-cost robotics and automated assembly line in several facilities where skilled labor is not too strong.