Supply chain challenges push IMI to Q3 loss

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Integrated Micro-Electronics, Inc. (IMI) swung to a $1.28-million net loss attributable to equity holders of the parent company in the third quarter from a $9.1-million profit during the same period in 2020, citing challenges arising from the global supply chain snarls and lockdown restrictions.

In a statement, the manufacturing arm of AC Industrial Technology Holdings, Inc. reported revenues from its contracts with customers inched up two percent to $319 million during the July to September period.

“Customer demand is still strong and we continue to win projects in strategic segments of the industry. However, the extended component shortage is forcing us to delay a significant amount of business,” IMI President Jerome S. Tan said in a statement on Friday.

IMI’s wholly-owned businesses saw revenues grow by five percent year on year to $249 million, while revenues for VIA optronics and Surface Technology International (STI Ltd.) went up by four percent to $77 million.

IMI said business margins and growth remain dampened by the global supply chain issues and local lockdown restrictions that have affected the recovery of major suppliers in the component industry.

“Just as supply chain challenges were starting to show signs of easing, rising [COVID-19] Delta cases in chip manufacturing regions has pushed back the recovery timeline. The situation has been further complicated by global shipping bottlenecks and expensive logistic expenses in 2021,” Mr. Tan said.

Global freight expenses have soared amid port congestion and shortages of shipping containers.

“The industry is now forecasting a staggered recovery in 2022, which is when we expect to clear the order backlogs in our facilities,” he added.

For the January-to-September period, IMI narrowed its net loss attributable to equity holders of the parent firm to $5.32 million, 55% lower than the $11.89 million in the same period last year.

Nine-month revenues grew by 23% to $972.97 million from $788.62 million a year ago.

Shares of IMI declined by 2.42% or 22 centavos to close at P8.88 apiece on Friday. — K.C.G.Valmonte

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