08/06/2020
The marked slowdown in global markets continues to hinder revenue growth across majority of IMI’s operating units. Significant investments in capacity and technical capabilities for growth areas also increased company overhead expenditures partly impacting its gross profit margins, IMI explains in a press release.
Full year gross profit amounted to USD 102.2 million with an 8.2% margin versus the 2018 margin of 10%. A softer Q4 operating performance plus additional reserves including inventory and other provisions of USD 5.3 million and valuation reserve on deferred tax assets of about USD 2.8 million, resulted in a full year net loss of USD 7.8 million.
The company’s Asian operating units dropped a total of 11% as China’s domestic market, particularly in the automotive space, continues to underperform. IMI Europe, which is largely automotive based, achieved a 3% growth year-on-year through the company’s newest production facility in Serbia despite the widespread industry slowdown and the Euro depreciation. Mexico, which serves the US market, continues to show a strong positive trajectory with a 50% revenue growth in 2019.
“Despite the continuing decline of the market environment, we are resolute in setting the bar to key technological advancements and remain ahead of the curve. With our resilience, along with our technical expertise and commitment to quality manufacturing, I’m confident that we shall continue to win significant businesses in emerging technology platforms. As the adoption of these new products begins to accelerate, we will relentlessly take the necessary steps to achieve sustainable returns as we pull through this current market situation,” says IMI’s chief executive officer, Arthur Tan, in the press release.
