IMI profit up 34% to $2.39B last year
Credit to Author: EIREENE JAIREE GOMEZ| Date: Thu, 07 Feb 2019 17:01:01 +0000
INTEGRATED Micro-Electronics Inc.’s (IMI) net income hit $45.5 million (P2.39 billion) in 2018 on the back of its acquisitions and the strong performance of its automative and industrial segments.
In a disclosure on Thursday, the Ayala-led electronics manufacturer said the amount was a 34-percent increase from the 2017 figures.
Consolidated revenues grew by 24 percent to $1.35 billion in January-December from $1.09 billion the previous year; revenues from IMI’s traditional business climbed by 16 percent to $1.04 billion; and revenues from its recently acquired German firm Via Optronics GmbH and British company STI Enterprises Ltd. rose by 61 percent year-on-year to a combined $312.4 million.
New programs in its industrial and automotive businesses surged by 41 percent and 21 percent, respectively, the company said, adding that “strong activities firmed up for strategic opportunities in aerospace.”
The net profit, IMI said, “includes non-operating items, such as net gain on the sale of a China entity and reversal of contingent consideration related to STI acquisition, partially offset by impairment of China goodwill, mark-to-market losses on put options and other one-off transaction costs.”
“The effect of the [renminbi and euro] depreciation and higher interest rates also added downward pressure,” it added.
Calling 2018 “a challenging yet exciting year,” IMI Chief Executive Officer Arthur Tan said in the statement that although a global shortage in electronic components affected his company last year, “we are confident that the choices we made years ago were the right decisions.”
“We remain committed in our strategy to develop complex and high value products that allows us to remain relevant in our focused target markets,” he added.
Last year, IMI’s business portfolio expanded with $320 million worth of new projects, 72 percent of which were for automotive applications.
“This drive to be a critical contributor to the digital car of tomorrow and other technological breakthroughs will enable us to deliver and meet increasing expectations of our stakeholders,” Tan said.
“The imbalance between supply and demand puts pressure in the way we do our business. Building solid relationships with customers and suppliers is the key. We have to establish realistic targets with positive thinking to stay ahead of the game,” said Gilles Bernard, IMI president and chief operating officer.
In 2018, IMI spent $65 million as capital expenditures to support innovative growth platforms.
IMI shares plunged by 22 centavos or 1.62 percent to close at P13.38 apiece on Thursday.
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