IMI Revenues Up 24% to US$1.35 billion in 2018
February 8, 2019, Laguna, Philippines — Integrated Micro-Electronics, Inc. (IMI) brought 2018 to a close with consolidated revenues of US$1.35 billion (P=70.81 billion), an increase of 24 percent year-on-year. The company posted a net income of US$45.5 million (P=2.39 billion), 34 percent higher than the prior year including favorable non-operating items. Gross profit grew 5 percent, however, gross profit margin declined to 10.1% from 11.9% partly due to tight supplies of electronic components.
IMI’s traditional business delivered US$1.04 billion revenues, a growth of 16 percent while recently acquired companies, VIA and STI, accelerated further with a growth of 61 percent yearon- year posting a combined revenue of US$312.4 million. The company benefited from new programs in the industrial and automotive segments which grew 41 percent and 21 percent, respectively, while strong activities firmed up for strategic opportunities in aerospace.
The reported net income includes non-operating items such as net gain on the sale of a China entity and reversal of contingent consideration related to the 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 RMB and EUR depreciation and higher interest rates also added downward pressure. Operationally and excluding foreign exchange impact, net income decreased 21 percent to US$25.8 million.
Arthur Tan, IMI chief executive officer, said, “2018 was a challenging yet exciting year. Although the company was affected financially by the global component shortage issue, 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.”
Also in 2018, the company’s business pipeline expanded with US$320 million new project awards, 72 percent of which are 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 added. “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,” Gilles Bernard, IMI president and chief operating officer stated.
Last year, IMI spent US$65.0 million on capital expenditures to build more complex manufacturing capabilities which were funded by proceeds from the stock rights offering. IMI’s balance sheet remains robust with a current ratio of 1.34:1 and debt-to-equity ratio of 0.80:1.
Integrated Micro-Electronics Inc. (IMI), the manufacturing portfolio of AC Industrial Technology Holdings, Inc., a wholly-owned subsidiary of Ayala Corporation is among the leading global manufacturing solutions expert in the world. IMI ranks 18th in the list of top 50 EMS providers in the world by the Manufacturing Market Insider (March 2018 edition), based on 2017 revenues. In the automotive market, it is now the 5th largest EMS provider in the world per New Venture Research.
IMI specializes in highly reliable and quality electronics for long product life cycle segments such as automotive, industrial electronics and more recently, the aerospace market.
For the automotive segment, IMI delivers customized solutions for safety and security, among others. It supplies cameras that are integral technology to the advanced driver assistance systems (ADAS). For the industrial segment, it manufactures security and access control devices, power modules, and building automation, among others. For the aerospace market, IMI's acquisition of Surface Technology International (STI) Enterprise, a UK-based company, addresses the quality and safety demands in the EMS aerospace segments. STI Enterprise has been supplying to the aerospace market for over 20 years, including products to a range of helicopters, multiple fast jet platforms, transport aircraft and drones.
From its manufacturing plants in the Philippines, China, Bulgaria, Czech Republic, Germany, Japan, Serbia, United Kingdom, Mexico and the United States, IMI provides engineering, manufacturing, and support and fulfillment capabilities to diverse industries globally.
For more information, visit www.global-imi.com.