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© thomaspajot dreamstime.com Business | August 12, 2016

IMI’s operating profit up 19 percent in 1H/2016

IMI posted USD 20.7 million in operating income for the period of January to June 2016; a 19 percent increase YoY, despite a slight decrease in revenues to USD 409.7 million (from USD 416.3 million).
Integrated Micro-Electronics Inc. (IMI) president and chief operating officer Gilles Bernard says, “The improvement in operating income came about as we expanded business in higher-margin segments of automotive and industrial. Line productivity and cost saving programs also had a positive impact.”

The company’s reported net income after tax for 1H/2016 of USD 15 million ; slightly lower by 1.4 percent year over year.

Capital investments in the first half reached USD 23.2 million, mainly for Mexico, Bulgaria, China and the Philippines to support line expansion. Production volume ramp up in automotive and industrial lines will commence in the fourth quarter of the year.

IMI’s Europe and Mexico operations recorded USD 153.4 million in revenues in 1H/2016 (an 11.5 percent improvement year over year) as the demand for automotive body controls and lighting systems that IMI assemble in Bulgaria and Czech Republic increased. In Mexico, revenues increased by 8.5 percent due to the strong performance of IMI’s plastic injection and assembly lines.

The company’s China operations posted USD 130.4 million in revenues, down 10.7 percent year-on-year mainly due to weak performance of the consumer electronics lines. The telecommunications infrastructure business, however, grew 6.8 percent year-on-year.

Revenues for IMI’s EMS operations in the Philippines remained flat at USD 109.6 million. Lines for automotive cameras, security and access controls, asset tag sensors, and lighting controls continued on the growth path, partially offsetting the weak storage device business.

IMI chief executive officer Arthur Tan says, “We continue expanding our lines, preparing them for the next wave of positive trends. The relentless rise in technology innovations is giving businesses speed and agility, and driving performance to ensure business success. We are optimistic that IMI has what it takes to remain relevant and on top of tech developments and trends down the road".
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