Samsung Electro-Mechanics Achieves Record High Sales and Operating Profit Last Year
[Asia Economy Reporter Park Sun-mi] Samsung Electro-Mechanics' operating profit exceeded 1.4 trillion KRW last year, achieving the highest sales and operating profit since its founding.
On the 26th, Samsung Electro-Mechanics announced that its sales and operating profit for last year reached 9.675 trillion KRW and 1.4869 trillion KRW respectively, marking a 25% and 63% increase compared to the previous year. Both sales and operating profit set record highs since the company's establishment, and it is the first time in three years that operating profit surpassed 1 trillion KRW.
On a consolidated basis, in the fourth quarter, sales were 2.4299 trillion KRW and operating profit was 316.2 billion KRW. Compared to the same period last year, sales increased by 554.8 billion KRW (30%) and operating profit by 55.3 billion KRW (21%). Compared to the previous quarter, sales decreased by 117.9 billion KRW (5%) and operating profit by 139.6 billion KRW (31%).
Samsung Electro-Mechanics explained that the improved performance compared to the same period last year was due to increased sales of high value-added multilayer ceramic capacitors (MLCC) for industrial and automotive applications, as well as high-spec package substrates for 5G smartphones and notebook PCs, and expanded supply of high-performance camera modules for flagship devices. However, compared to the previous quarter, performance declined due to reduced demand from year-end customer inventory adjustments, seasonal factors, and the reflection of one-time costs.
By business division, the component division's fourth-quarter sales reached 1.1736 trillion KRW, a 22% increase compared to the same period last year, driven by expanded supply of high-capacity and high value-added products for industrial and automotive use. The optical communication solutions division recorded sales of 777.4 billion KRW, a 38% increase year-on-year, due to expanded supply of high-performance camera modules for overseas clients and automotive high-performance camera modules. The package solutions division achieved 478.9 billion KRW in fourth-quarter sales, a 38% growth, driven by increased supply of high-spec ball grid arrays (BGA) for mobile APs and 5G antennas, as well as high value-added flip-chip ball grid arrays (FCBGA) for thin CPU substrates.
A Samsung Electro-Mechanics official stated, "Although the external business environment is uncertain this year, market growth in promising fields such as 5G, big data, and electric vehicles will continue," adding, "Samsung Electro-Mechanics plans to lead the market through cost competitiveness enhancement and differentiated product development."
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