Integrated Micro-Electronics Inc., a unit of Ayala Corp., registered a net loss of $7.78 million in 2019, a reversal from a profit of $47.18 million in 2018, amid a slowdown in global markets.
IMI said in a disclosure to the stock exchange consolidated revenues declined 7 percent in 2019 to $1.25 billion from $1.35 billion in 2018.
“The marked slowdown in global markets continues to hinder revenue growth across majority of IMI’s operating units,” IMI said.
“Significant investments in capacity and technical capabilities for growth areas also increased company’s overhead expenditures partly impacting its gross profit margins,” it added.
Despite the weak global market, IMI said it managed to bag new projects across all facilities that could potentially generate $407 million annual revenues.
IMI’s wholly-owned businesses made $1 billion in revenues,down 3 percent from 2018.
Income of Asian operating units fell 11 percent as China’s domestic market, especially in the automotive space, continues to underperform.
Meanwhiile, IMI Europe, which is largely automotive-based, achieved a three percent growth following the opening of the company’s newest production facility in Serbia and despite the widespread industry slowdown and the euro depreciation.
Mexico, which serves the US market, also continues to show a strong positive trajectory with a 50-percent revenue growth in 2019.
Recently-acquired Via Optronics and STI Ltd. posted combined revenues of $248 million, down 21 percent from the previous year.
IMI said the drop in Via revenues was mainly driven by the slump in the computing consumer segment and the delay in the release of the new generation Intel chip.
Meanwhile, the Brexit caused delays in STI’s program awards. STI, however, continues to have a strong pipeline wins amounting to $124 million in 2019.
“Despite the continuing decline of the market environment, we are resolute in setting the bar to key technological advancements and remain ahead of the curve,” said IMI chief executive officer Arthur Tan.
“With our resilience, along with our technical expertise and commitment to quality manufacturing, I’m confident that we shall continue to win significant businesses in emerging technology platforms,” he added.
