Integrated Micro-Electronics Inc., a manufacturing solutions company controlled by Ayala Corp., said net income in 2016 fell 2 percent to $28.1 million from a year ago, on lower contributions from Asian operations.
IMI said in a disclosure to the stock exchange revenue rose 4 percent, while operating income climbed 13 percent last year, amid a challenging environment in electronics manufacturing.
“Despite challenges in the global economic environment and the ongoing portfolio mix changes from our Asian operations, we were able to accomplish a positive growth and improved gross profit margin by 50 bps to 12 percent,” IMI president and chief operating officer Gilles Bernard said.
IMI said operations in Asia delivered lower growth as a result of China’s slower economic activity and IMI’s strategic decision to disengage from one consumer electronics business.
Its Philippine operations also drew away from the declining segment in computing peripherals, driving lower growth.
China operations posted sales of $261.4 million, down 6 percent from last year while electronics services operations in the Philippines booked $221 million in revenues, down 2 percent from 2015.
Meanwhile, PSiTechnologies, IMI’s semiconductor assembly and test subsidiary, posted $33 million in revenues, down 2 percent year-on-year.
IMI said it continued to expand footprint in higher complex box build offerings, while making disciplined investments to fund growth initiatives.
IMI spent $52.3 million in capital expenditures in 2016 to build more complex and higher value-added manufacturing capabilities and growth platforms.
“The company’s robust presence in the automotive and industrial segments equipped IMI to seize many opportunities ahead. We won new projects in 2016, mostly from those segments, a 23-percent growth from the previous year,” said IMI chief executive Arthur Tan.