Integrated Micro-Electronics Inc. (IMI), the electronics manufacturing unit of the Ayala Group, said Friday it incurred a net loss of $8.8 million in the first half of 2024 on lower revenues.
IMI, which operates 19 manufacturing plants across nine different countries, said in a disclosure to the stock exchange sales in the first six months declined 18 percent to $566 million.
Aside from continued challenging market conditions, IMI attributed the drop in sales to the divestment of STI and delayed ramp-up of new projects that contributed to lower utilization levels.
It said while the company’s wholly-owned subsidiaries remained net positive, non-core activities continued to face challenges for the period.
“Market softness in the industrial sector has affected IMI’s Philippine operations, with reduced demand from end markets delaying customer launches of new models as the supply chain continues to trim down existing inventory levels,” IMI said.
IMI said it would continue to optimize its customer portfolio by reducing involvement in lower-margin projects, aiming to enhance profitability and focus on higher-value opportunities within its pipeline.
It will also implement rightsizing initiatives as corporate structures are realigned with current business dynamics.
“We have initiated various activities aimed at fortifying our financial health, enhancing operational effectiveness, and delivering greater value to our stakeholders. These measures include streamlining operations through simplified organisation,” said IMI chief executive officer Hughes.
“We have initiated various activities aimed at fortifying our financial health, enhancing operational effectiveness, and delivering greater value to our stakeholders. These measures include streamlining operations through simplified organizational structures to enhance decision-making agility,” he said.
Hughes said IMI was also focused on eliminating inefficiencies to lower operational costs without compromising the manufacturing quality.
