29% Increase Compared to Previous Year
Sales Reach 2.6243 Trillion Won... 30% Up Year-on-Year
Samsung Electro-Mechanics recorded strong performance due to increased sales of high-end components for smartphones and automotive parts.
Samsung Electro-Mechanics announced on the 29th that its consolidated operating profit for the first quarter of this year reached 180.3 billion KRW, a 29% increase compared to the same period last year. During the same period, sales were 2.6243 trillion KRW, and net profit was 186.5 billion KRW, up 30% and 57.9%, respectively.
By segment, the Component division posted first-quarter sales of 1.023 trillion KRW, up 24% year-on-year and 5% quarter-on-quarter. Samsung Electro-Mechanics explained that sales increased due to expanded supply of high value-added products such as industrial multilayer ceramic capacitors (MLCC) for artificial intelligence (AI) servers and power applications, as well as automotive MLCCs.
Sales in the Optical Communication Solutions division reached 1.1733 trillion KRW, growing 47% year-on-year and 32% quarter-on-quarter. Samsung Electro-Mechanics stated that sales increased by expanding supply of high-resolution products and high-definition slim folded zoom to major customers, and high-end products with variable apertures to overseas clients.
The Package Solutions division recorded sales of 428 billion KRW in the first quarter, an 8% increase year-on-year. Although supply of ball grid array (BGA) for ARM processors and high value-added automotive flip-chip package substrates (FC-BGA) related to advanced driver-assistance systems (ADAS) and autonomous driving increased, sales declined quarter-on-quarter due to weakened demand in some applications such as mobile and PC.
Samsung Electro-Mechanics explained, "In the second quarter, the high value-added product markets such as industrial and automotive MLCCs and AI/server package substrates are expected to grow. We plan to focus our business capabilities on high-end products with expected sustainable growth and strengthen customer responsiveness."
Specifically, the Component division expects MLCC demand to increase in the second quarter due to moderate growth in set demand. Therefore, it plans to increase sales of small-sized, high-capacity products for information technology (IT) and ultra-high-capacity MLCCs for AI servers, and continue expanding high value-added automotive products as demand rises with automotive electrification.
The Optical Communication Solutions division will respond to new flagship high-performance camera module products from domestic and overseas customers scheduled for release in the second half of the year, increase supply of high-resolution automotive camera modules, and focus on developing next-generation products such as all-weather heating cameras and hybrid lenses.
The Package Solutions division plans to expand supply of FC-BGA for PC and server central processing units (CPUs) and BGA substrates for memory as set demand for PCs and servers is expected to gradually recover. Additionally, as demand for high value-added products such as servers and AI accelerators is expected to have bottomed out and to increase going forward, the company plans to respond to demand through operation and production stabilization of its new factory in Vietnam.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
