Integrated Micro-Electronics Inc., an electronic manufacturing company owned by conglomerate Ayala Corp., said Wednesday net income in 2015 stood at $28.8 million (P1.3 billion), sightly down from $29.1 million in 2014 on weak euro and the slowdown in China’s economy.
IMI said in a disclosure to the stock exchange consolidated revenues dropped four percent to $814.4 million (P37 billion) also because of weak euro and the downturn in the computing and telecommunications segments.
Minus the impact of changes in currency exchange, total revenues increased by two percent in 2015.
“Against the backdrop of a challenging global marketplace, we expanded operating margin by 114 basis points and generated $49.8 million of cash flow from operations by focusing on high-margin auto and industrial segments and continued productivity improvements,” IMI president and chief executive officer Arthur Tan said,
Despite the lower revenues, IMI cited the strong volume growth in the automotive segment. Revenues of the company’s advanced driver assistance systems, or ADAS programs (such as automotive camera programs), posted a 66-percent increase in 2015.
IMI’s China operations recorded $279.3 million in revenues in 2015, down percent from the previous year, as the 4G telecommunications network rollout in China reached its projected volume, while the consumer electronics segment experienced a slowdown.
IMI’s Europe and Mexico operations registered combined revenues of $267.4 million, flat from last year’s level.
The electronics manufacturing firm said the continued weakness in the euro resulted in a three percent revenue decline for IMI’s Bulgaria and Czech Republic factories.
IMI revenues in Mexico increased nine percent on higher demand for plastic injection and assembly.
The overall revenues of IMI’s Europe and Mexico plants would have increased by 15 percent if not for the weak euro.
IMI’s electronics manufacturing services operations in the Philippines posted $225.3 million in revenues, up 10 percent from $204.9 million in 2014, due to a strong demand for automotive cameras and security and access control devices.
“We maintained profitability as we continue to make advances on the initiatives we started some five years ago—focus on high-margin segments, full integration of acquisitions, rationalization of costs, expansion of global footprint, and development of human capital and equipment,” Tan said.
“Moving forward, we will continue to expand in Bulgaria, Mexico and Philippines as our automotive business grows, and we will intensify our play in industrial and other growing segments,” Tan said.