Integrated Micro-Electronics Inc., a unit of Ayala Corp., reported a net income of $335,000 in the first three months of 2019, down 94 percent from $5.6 million year-on-year, on lower revenues and foreign exchange losses.
IMI said in a disclosure to the stock exchange Monday first-quarter consolidated revenues reached $323 million, down one percent from $325 million a year ago, while margins were constrained by a global market slowdown due to the fallout from the trade wars, political uncertainty in the UK and the electronic component shortage.
“Despite the unfavorable business climate, IMI remains committed to our assurance of highest quality and on-time delivery for all our business partners,” said IMI president and chief operating officer Gilles Bernard. “Aside from elevated raw materials costs, tight supplies of electronics components raised the need for expedited production cycles and expensive freight deliveries to maintain IMI’s top-level standards.”
“As we continue to address the short-term challenges in our supply markets, we remain aggressive in executing our efficiency initiatives to align our cost structure with uncertain external environment and ensure the stability of all our businesses,” Bernard added.
IMI said it was expanding target business segments—automotive, industrial, and aerospace—comprising 77 percent of the total revenues in the quarter.
Automotive posted revenues of $168 million, up 27 percent on-year, while industrial registered sales of $68 million, up 10 percent.
Revenues from aerospace, which IMI entered through the acquisition of STI Enterprises Ltd., a UK-based electronics manufacturing services company, stood at $13 million, up to six percent.
Revenues from the consumer and telecom segments, however, declined 59 percent and 12 percent, respectively, due to delays in new project awards and China’s economic slowdown.
