Ayala's IMI sees higher profits this year
MANILA -- Ayala-led Integrated Micro-Electronics Inc. (IMI) expects to rake in higher earnings in 2013 versus a year ago, banking on an improving global economy that will buoy demand for electronic products.
"Demand in general is picking up, the US economy is stabilizing so we see an uptake on that front. The European market, although it has a fiscal problem, I think we're being able to manage that," Arthur Tan, IMI president, told ANC on Wednesday.
"So the largest component of the consuming market is still going to be Asia driven by China and with China forecasting a 7% GDP (gross domestic product) growth I think [it will] pull everybody else... so with that perspective I see that over all, performance for 2013 will be better than what 2012 was," he continued.
The electronics manufacturer saw its consolidated net income jump 65% to $5.4 million last year on better global economic prospects.
But during the first quarter of 2013, IMI's net income plunged 70% to $253,000, blamed to "lower capacity utilization in its China facilities."
Tan, however, said the Ayala unit is expecting profits to improve starting in the second quarter.
"We see the second quarter being able to recover from our China operations so we see a better China performance for the second quarter," he quipped.