IMI incurs loss despite revenue increase
ELECTRONICS manufacturer Integrated Micro-Electronics Inc. (IMI) posted $357 million of revenues in the second quarter of 2022, a 7-percent increase compared to the first quarter of 2022 and a 12-percent increase year on year for the first half of 2022.
The slow recovery of the industry-wide component shortage was further aggravated by inflation pressures, skilled labor shortage and foreign currency depreciation against the US dollar. These headwinds have impacted IMI growth margins as the company posted a net loss of $3.5 million for the quarter.
The strength of the US dollar in the second quarter also affected the financial results in their European and Chinese manufacturing operations that primarily book contracts in currencies other than the US dollar.
IMI’s wholly-owned subsidiaries managed to remain profitable and sustained their quarter-on-quarter sales recovery with $290 million with a12-percent increase against the first quarter of 2022.
Non-wholly-owned subsidiaries, on the other hand, declined 11 percent quarter on quarter to $67 million in revenues as it continues to be affected by component shortage issues.
“Various macroeconomic challenges continue to affect the entire electronics manufacturing industry. Our management teams across the globe have been working diligently to mitigate its effects on our business and ensure that we are well-positioned to maintain IMI’s growth trajectory,” IMI President Jerome Tan said. “By expanding our supply chain network and increasing regional access to components, we aim to reduce raw material costs and minimize reliance on expensive freight services. And as the business environment begins to normalize, we intend to maintain our streamlined structure and further improve on the efficiency of our operations,” he added.
IMI is the manufacturing arm of AC Industrial Technology Holdings Inc., a wholly-owned subsidiary of Ayala Corp. It specializes in electronics for long product life cycle segments such as automotive, industrial electronics and more recently, the aerospace market. From its 21 manufacturing plants across 10 different countries, the company provides engineering, manufacturing, and support and fulfillment capabilities to diverse industries globally.