Plant shutdowns in various regions where it operates led to listed Ayala group unit Integrated Micro-Electronics Inc. (IMI) to book a modest $476 million revenues in the first half.
Facilities in the Philippines, China, and Mexico all adhered to government mandated lockdowns to contain the spread of COVID-19. The global situation led to a 25 percent year-on-year reduction in top line sales while margins are likewise challenged with gross profit at $30.5 million equating to a 6.4 percent margin.
Reduction of overhead costs by approximately $10 million through streamlining initiatives and government incentives helped mitigate the effects of the extended market softness. The addition of one-time inventory provisions totaling around $3 million increased the total net loss to $21.5 million in the first half.
“IMI has endured through several major crises in our 40-year history. Our battle-hardened organization has built IMI for long-term success,” IMI president and chief executive officer Arthur Tan said.
Tan indicated that challenging market environments bring opportunity to those who come prepared. “IMI’s flexibility and expertise in providing the best quality technology solutions will allow us to emerge stronger than we were before,” he noted.
Supply shifts cushion losses
Revenues of IMI’s wholly-owned businesses declined to $367 million, a 28 percent slide from last year.
While some operating regions faced mandatory lockdowns, operating sites in Bulgaria and Czech Republic
aligned with the demand slowdown from equipment manufacturers by exercising voluntary reduced work schedules.
As the automotive market outlook remains weak in the short term, IMI’s wide product portfolio has captured the increased demand from the consumer, industrial, medical, and telecom sectors.
Via Optronics and STI Ltd. booked combined revenues of $109 million for the period. In time for the uptick in global laptop demand, Via’s LCD supply chain issues were resolved in the second quarter, helping the subsidiary rebound with a 47 percent quarter-on-quarter improvement in top line sales.