IMI income skyrockets

MANILA, Philippines - Integrated Micro-Electronics Inc. (IMI), the electronics manufacturing services unit of the Ayala conglomerate, posted strong earnings growth in the first nine months of the year on the back of higher revenues.

IMI’s net income skyrocketed to $21 million in the third quarter from $5.3 million recorded during the same period last year, the company said.

The company recorded a double-digit surge in revenues in the first nine months of the year, fueled by strong demand from the communication and automotive businesses.

IMI said consolidated revenues for the period ending September grew 19 percent to $650.1 million, up from $547.1 million a year ago.

“Despite continued volatility in the global markets, IMI maintains a profitable growth as it is naturally hedged by the diversity of its markets served and locations in which it operates,” IMI president and chief executive officer Arthur Tan said.

For the first nine months of the year, IMI said its China operations generated $246.3 million revenues, up 25 percent from last year due mainly to volume expansion for main customers in the telecommunications segment.

The company said its China operations accounted for 38 percent of total revenues.

“The Chinese economy, despite the slowdown, manages itself well. Its 4G rollout has commenced, which benefits IMI from the standpoint of increased demand for telecommunications infrastructure devices,” Tan said.

Revenues from the company’s Europe and Mexico operations, meanwhile continued to increase with the sustained expansion of the automotive business in IMI’s factory in Bulgaria, said Tan.

“European electronics brands remain strong, driven by rising demand in automotive electronics,” he said.

The combined revenues of IMI operations in Europe and Mexico stood at $202.4 million, up 16 percent year-on-year.

Locally, IMI said its electronics manufacturing services operations registered $166.8 million in revenues, higher by 18 percent year-on-year on the back of a strong performance of its storage device business and an upsurge in its automotive electronics business.

IMI’s power semiconductor company, PSi Technologies Inc., registered $34.4 million in revenues, surpassing last year’s by four percent, the Ayala unit reported.

“The demand for power semiconductors is on the rise, alongside the growing demand for environment-friendly, energy-saving products,” Tan said.