MANILA, Philippines – Integrated Micro-Electronics Inc. (IMI) reported a four percent increase in income from January to September, which is equivalent to $28.8 million.
The company’s revenues dropped from $621.5 million to $615.7 million against last year.
According to analysis, its earnings decline was due to its recent expansion effect, which is a higher depreciation. Flat revenues appear to be contributive to this decline in income as disclosed by IMI to the Philippine Stock Exchange (PSE) on Friday.
IMI’s Europe and Mexico operations have registered higher revenues. In contradiction, its China-based operations had a nine percent drop to $195.8 million following the company’s plan to leave selected consumer electronics business.
The company’s President and Chief Operating Officer, Gilles Bernard, stated that the allocation of its investments is being decided carefully. He said that in spite of pressure on non-core businesses’ revenues, such as computing and consumer, the improvements in output more than amended its volume losses. Consequently, its operating income increased.
Bernard added that they compensated for growth funds, which amounted to $41.1 million, 6.7 percent of its capital expenditure returns.
In the Philippines, its EMS operations dropped to $166.6 million, or one percent, after leaving support for computing peripherals.
The firm’s Chief Executive Officer, Arthur Tan, stated that IMI is eyeing value chain’s upward movement through customer partnerships that are mapping their improvement.
Tan added that the company’s steady growth commitment is represented by its operating results. They are confident that they will be able to gain more opportunities with their effective business strategies.
The company’s concentration on its Ayala Corp. core manufacturing entity would carry on.
The electronics company ranks in the top 50 electronics manufacturing services (EMS) providers in the world. The list is anchored on EMS-related revenues and latest ranking of Manufacturing Market Insider.
As per New Venture Research, the company is the sixth largest EMS provider in the automotive sector.
IMI stocks increased from its previous closing of P6.08 to P6.11 per share.