Integrated Micro-Electronics Inc., a unit of conglomerate Ayala Corp., plans to invest $75 million in 2018, up 14.8 percent from $65.3 million in actual spending in 2017, mainly to support the expansion of its Philippine and overseas operations.
IMI said in a recent filing it would spend P2.39 billion to purchase additional machineries and equipment and P600 million to build a new manufacturing plant in Serbia, buildings and facilities and other factory improvements in Bulgaria, the Philippines and the Czech Republic.
It is allotting another P180 million for costs associated with the maintenance of plant and other facilities, and P300 million for investments in IT infrastructure.
Spending for this year’s capital expenditures will mainly come from a planned P5-billion stock rights offering.
IMI plans to use up to P1.49 billion from the rights offering to settle short term obligations with several financial institutions.
Meanwhile, IMI reported a net income of $34 million in 2017, up 21 percent from 2016, while revenues registered a record high of $$1.09 billion, an increase of 29 percent from the 2016 level.
“We’re eager to build on this success and continue to ensure that our diverse capability as an organization will sustain our competitive advantage and stronghold in the global market. As a cohesive global company with a shared vision, we aim to design competitive positions and strategies that capitalize on corporate strengths,” IMI chief executive Arthur Tan said.
Revenues from Europe operations grew 14 percent to $276.5 million, benefiting from lighting, controllers and driver assistance systems of its automotive segment.
In Mexico, revenues expanded 29 percent to $84.2 million, as numerous projects for North America customers entered a new product introduction phase throughout the year.
China operations posted $271.1 million in revenues, up 4 percent despite the delay in new technology rollout in the telecom infrastructure business.
Revenues from Philippine operations rose 4 percent to $263.7 million, strengthened by new industrial applications and the automotive camera business.
Revenues from acquired businesses amounted to $193.9 million in 2017.