Integrated Micro-Electronics Inc. (IMI), the manufacturing arm of Ayala-led AC Industrial Technology Holdings Inc., reported consolidated revenues dropping seven percent to $939.6 million in the first nine months, from $1.01 billion in the same period last year, due to a slowdown in its main market segments paired with geo-political issues hindering growth.

The global manufacturing solutions provider further said net income attributable to equity holders in the January to September period dropped to $451 thousand, including a provision for non-recurring deferred expenses of $5.2 million, from a net income of $41.4 million last year.

The company’s gross profits also declined 26 percent to $79.1 million. IMI said a contraction in the automotive space, particularly in China, has brought down customer demand forecasts.

IMI’s wholly-owned businesses posted a three percent decline in revenues to $755.2 million, with factories in China dropping 22 percent in the nine-month period compared to last year. China on-going negotiations with the United States after more than a year-long trade war between the two economic powerhouses.

Revenues from Via Optronics and STI Enterprises Inc. dropped 20 percent to $184.4 million. IMI attributed this to the delay in the production of next generation computer processors, which affected Via’s consumer laptop business.

The company also said it expects to roll out new products by the end of 2019 to support the segment’s rebound.