This comes as the group reported a net loss of $9.2 million during the first nine months of 2024, which was amplified by “restructuring expenses and other non-operational one-offs.”
In terms of core earnings, which excludes non-recurring items, IMI said it posted a profit of $4.3 million during this period. At the same time, revenues slumped 9 percent to $841 million.
“The automotive market’s continued uncertainty, coupled with industrial customers’ rightsizing of inventory levels, has led to reduced ordering patterns and pushouts of new product ramp-ups,” the company said.
Management’s view
“We are navigating the turbulent waters of the electronics market this year with both agility and decisiveness,” IMI CEO Louis Hughes said in a statement on Monday.
“While securing order demand remains a challenge, we have managed to mitigate the impact of the headwinds we face,” he added.
$25-M in cost savings
“Through targeted rightsizing initiatives, we have been able to reduce core fixed overhead and [Selling, General and Administrative] expenses, which will result in approximately a $25-million annualized reduction for the year,” Hughes said.
“By operating more efficiently with a flatter, leaner support structure, we are positioning ourselves to enhance profitability as customer ordering patterns normalize,” he said. “Furthermore, we are increasingly more selective of the projects we pursue, focusing on businesses that align with our core competencies,” he added.
New growth opportunities
Finally, Hughes pointed to potential growth avenues despite ongoing challenges. “Our prolific sales team is also actively looking to grow our industrial segment and bring better balance to the portfolio concentration within our business,” he said.
German unit slows
VIA Optronics, in which IMI holds a 50 percent stake, reported revenues of $83 million as of September 2024, down 37 percent year-over-year.
This decline stems from reduced laptop demand, lost automotive orders, and a customer bankruptcy in the mobility camera segment.
In response, VIA is restructuring by cutting overhead, delisting from the NYSE, and modernizing its Suzhou facility to enhance efficiency.
