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Thursday, April 18, 2024

IMI incurred net loss of $17M in Q2 on factory shutdowns in PH, overseas

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Integrated Micro-Electronics Inc. on Friday reported a net loss of $17 million in the second quarter, a turnaround from a $5.45-million profit it posted in the same period last year, as plant shutdowns in domestic and foreign operations affected earnings during the period.

IMI said in a disclosure to the stock exchange Friday revenues tumbled 53.7 percent in the second quarter to $220.4 million from $476.2 million a year ago. Its manufacturing facilities in the Philippines, China and Mexico were closed down to adhere to government-mandated lockdowns to contain the spread of coronavirus.

The addition of one-time inventory provisions totaling $3 million increased the company’s net loss to $21.5 million in the first half.

“IMI has endured through several major crises in our 40-year history. Our battle-hardened organization has built IMI for long-term success. Challenging market environments bring opportunity to those who come prepared. IMI’s flexibility and expertise in providing the best quality technology solutions will allow us to emerge stronger than we were before,” IMI president and chief executive Arthur Tan said.

“IMI expects a steady improvement in the second half of the year as revised customer forecasts indicate a better recovery than initially expected. The project pipeline continues to be active with $175 million of new business wins despite the business constraints brought about by the pandemic,” Tan said.

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IMI’s wholly-owned businesses declined 28 percent to $367 million in revenues.

It said that while some operating regions faced mandatory lockdowns, production plants in Bulgaria and Czech Republic exercised voluntary reduced work schedules aligned with the slowdown in demand for customers.

It said the automotive market outlook remained weak in the short term, but it captured the increased demand from the consumer, industrial, medical and telecom sectors.

IMI recently acquired Via Optronics and STI Ltd. which booked combined revenues of $109 million in the period.

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