IMI records revenues of $323M in 1Q19

Margins remain constrained by global market slowdown due to the fallout from the trade wars, political uncertainty in the UK and the ongoing electronic component shortage, the company states in a press release. Gross profit for Q1 is at USD 29.1 million with margins declining to 9.0% from 10.6% last year. The company ended the quarter with USD 335,000 net income versus last year’s net income of USD 5.6 million. IMI continues to grow its target business segments — automotive, industrial, and aerospace which comprise 77% of total revenues for the quarter. Automotive at USD 168 million, grew 27%. Industrial at USD 68 million, grew 10%. Aerospace, which IMI entered through the acquisition of STI, is now at USD13 million, a growth of 6% from last year. However, consumer and telecom segment declined by 59% and 12%, respectively, due to delays in new project awards and China economic slowdown. “Despite the unfavorable business climate, IMI remains committed to our assurance of highest quality and on-time delivery for all our business partners,” says Gilles Bernard, IMI President and Chief Operating Officer, in the press release. Aside from elevated raw materials costs, tight supplies of electronics components raised the need for expedited production cycles and expensive freight deliveries to maintain the standards the company wants to uphold. “As we continue to address the short-term challenges in our supply markets, we remain aggressive in executing our efficiency initiatives to align our cost structure with uncertain external environment and ensure the stability of all our businesses,” Bernard added. Arthur Tan, IMI Chief Executive Officer, adds “Long and healthy relationships with our key customers have enabled us to open discussions to mitigate financial headwinds on IMI as we weather the global component issue. Having positioned ourselves as a top provider of high complexity technology solutions, we are poised to rebound quickly on both revenue and profitability aspects as our investments in the past years come to full utilization.” IMI has utilised USD180M for capital expenditures in the past three years, a significant portion of which was spent to support development of high-tech businesses and the opening of new operating sites that expanded its manufacturing footprint to Serbia and Japan.