LAGUNA, PHILIPPINES — Integrated Micro-Electronics reported second-quarter sales fell 2.1% from a year ago to $210.6 million.

Net income for the EMS company was up 26.2% to $8.5 million.

First-half operating income was up 19% to $20.7 million, IMI added. The firm credited a focus on high-margin product segments, continuous improvements in operations, and disciplined cost management.

IMI president and chief operating officer Gilles Bernard says, “The improvement in operating income came about as we expanded business in higher-margin segments of automotive and industrial. Line productivity and cost saving programs also had a positive impact.”

The firm spend $23.2 million on capital investments during the first half, mainly for Mexico, Bulgaria, China and the Philippines to support line expansion. Production volume ramp up in automotive and industrial lines will commence in the fourth quarter.

IMI’s Europe and Mexico operations recorded $153.4 million in revenues in the first half, up 11.5% year-over-year, as the demand for automotive body controls and lighting systems that IMI assemble in Bulgaria and Czech Republic increased. In Mexico, revenues increased by 8.5 percent due to the strong performance of IMI’s plastic injection and assembly lines.

The company’s China operations posted $130.4 million in revenues, down 10.7% year-over-year, due mainly to weak performance in consumer electronics. Telecommunications infrastructure grew 6.8% year-on-year.

Revenues for IMI’s EMS operations in the Philippines were flat at $109.6 million. Lines for automotive cameras, security and access controls, asset tag sensors, and lighting controls continued on the growth path, partially offsetting weaker storage device business.

IMI chief executive officer Arthur Tan says, “We continue expanding our lines, preparing them for the next wave of positive trends.

“The relentless rise in technology innovations is giving businesses speed and agility, and driving performance to ensure business success. We are optimistic that IMI has what it takes to remain relevant and on top of tech developments and trends down the road,” adds Tan.

Register now for PCB West, the Silicon Valley's largest trade show for the printed circuit industry, taking place Sept. 13-15 in Santa Clara: pcbwest.com

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