IMI reports continued growth despite macroeconomic issues
Integrated Micro-Electronics, Inc. (IMI) posts USD 357 million of revenues in the second quarter of 2022, a sequential 7% growth compared to the first quarter of 2022 and 12% better than the same period last year.
The company says that the slow recovery of the industry-wide component shortage situation was aggravated by the continued rise of inflation, shortage of skilled labor, and foreign currency depreciation against the US dollar. These headwinds have impacted IMI margins with a net loss of USD 3.5 million for the quarter.
The first half of the year ends with USD 691 million in revenues and a net loss of USD 5.5 million for the group, while IMI wholly-owned subsidiaries achieved a net income of USD 3.6 million, the company states in a press release
The strength of the US dollar in the second quarter has affected financial results in IMI’s European and Chinese sites that primarily book contracts in Euro, British Pound, and Chinese Renminbi. Despite these challenges, wholly-owned subsidiaries managed to remain profitable and sustained their quarter-on-quarter sales recovery with USD 290 million, a 12% growth against the first quarter of the year. VIA and STI on the other hand, continue to be more significantly affected by component shortage issues. Non-wholly owned subsidiaries declined 11% quarter-on-quarter to USD 67 million in revenues.
“Various macro-economic headwinds continue to affect the entire electronics manufacturing industry. Our management teams across the globe have been working diligently to mitigate the effects on our business and ensure that we are well positioned to maintain IMI’s growth trajectory. 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. We are also driving profitability by rolling out industrial excellence initiatives across our facilities,” said IMI president Jerome Tan, in the press release.