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China operations fuel IMI's income

Posted: 24 Oct 2014 ?? ?Print Version ?Bookmark and Share

Keywords:IMI? revenue? communication? automotive?

Integrated Micro-Electronics Inc.'s earnings skyrocketed in the first nine months of the year on the back of higher revenues. The Laguna, Philippines-based company attributed the strong earnings growth to its communication and automotive businesses, which contributed 70 per cent to the total increase.

IMI posted revenues of $650.1 million, a 19 per cent increase from $547.1 million for the same period in 2013. This year, the company's net income is $21 million, which is a jump from the $5.3 million recorded during the same period last year. (In related news: IMI eyes new EMS model to fuel growth)

Arthur Tan, IMI president and CEO, chalks up the increase to the China operations, which accounts for 38 per cent in the company's total revenues. For the nine-month period of 2014, IMI's China operations generated $246.3 million revenues, 25 per cent higher than last year's due mainly to volume expansion for main customers in the telecommunications segment.

"The Chinese economy, despite the slowdown, manages itself well," Tan said. "Its 4G rollout has commenced, which benefits IMI from the standpoint of increased demand for telecommunications infrastructure devices."

Revenues from the company's Europe and Mexico operations continued to increase with the sustained expansion of the automotive business in IMI's factory in Bulgaria. Tan notes that the "European electronics brands remain strong, driven by rising demand in automotive electronics." The combined revenues of IMI operations in Europe and Mexico of $202.4 million grew by 16 per cent year-over-year.

In the Philippines, IMI's EMS operations raked in $166.8 million in revenues, an 18 per cent year-on-year growth due mainly to a strong performance of its storage device business and an upsurge in its automotive electronics business.

Meanwhile, IMI's power semiconductor company PSi Technologies Inc. posted $34.4 million in revenues, surpassing last year's by 4 per cent. Tan says, "The demand for power semiconductors is on the rise, alongside the growing demand for environment-friendly, energy-saving products."

The company's revenues for the third quarter ended Sept. 30 increased by 11 per cent over the year-ago quarter to $219.1 million, driven by double-digit growth in telecommunications infrastructure devices and storage device markets as well as the continuous expansion of its automotive business.

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