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Samsung Electro-Mechanics posts profit for three quarters in row

Samsung Electro-Mechanics Co. posted Q3 sales of 623.1 billion won, up from 574 billion won in the Q2 with gross profit amounting to 106.3 billion won.
The operating income in the quarter was reduced to 2.4 billion won from 4.1 billion won in the preceding quarter. Non-operating income amounted to 32 billion won, down from 41.3 billion won in the Q2. Ordinary income in the Q3 came to 18.5 billion won, compared to 19.7 billion won in the Q2. Net income for the quarter totaled 19.5 billion won, up from 19 billion won registered for the preceding quarter. Net come in the Q1 recorded to 26.8 billion won.
In 1973, when the company was launched, its total assets amounted to 994 million won with 78 million won in sales, and 998 employees.
Today, the company has grown enough to be a global concern with consolidated assets totaling 3,125.7 billion won in 2005 and annual sales of 2,914.8 billion won with over 25,600 employees. Since 2000, the company has significantly enhanced the profitability of it business portfolio. Its ongoing innovation initiatives such as Six Sigma and methodical restructuring have also continued to raise its competitiveness.
In the years to come, the company believes that its competitive edge in value-added technologies and commitment to building win-win relationships with its shareholders will be the driving forces behind its sustainable growth and emergence as one the industry's top manufacturers.
Top managers of the company have set sights on making the company one of the world's top-three electronic components makers by the end of the decade.
In 2005, the company selected thin-film IC substrates, high-resolution camera modules, high- capacitance multi-layer ceramic capacitors, and system modules as its core product categories, targeting a value-added product mix that will boost its profitability in the coming years.
The company's goal is to be the global market leader in multi-layer circuit boards, camera modules and multi-layer ceramic capacitors by 2007 on its way to being a leading player in each of its eight strategic product categories by 2010.
The company has put its full eight behind the development and manufacturing "must have"products. Providing more convenient service. Creating new jobs. Contributing to to local economic growth. It also aims at generating value for shareholders. All these being essential to economic sustainability and the very reasons for companies to exist.
That's why the company is reaching higher inside to help make tomorrow more affluent for all.
Samsung Electro-Mechanics has earmarked 380.5 billion won to expand its production capacity. A new Flip chip substrate line(monthly output of 13-15 million boards) is being installed at the Busan plant. This is the largest chip PCB capacity expansion project ever in Korea, and SEM aims to become the world market leader in 2008.
SEM is building a new line to produce flip hip printed circuit boards. These high-performance substrates are rapidly replacing the older wire bonding technology, where chips are connected face-up to the board via a wire connection. Instead, the chips are directly connected onto the substrate face-down or "flipped"over) by means of conducive solder bumps.
This way, less heat is generated and less power is required, while signal processing is accelerated. The flip devices such as CPU and chipsets.
Surging demand for these flip chip boards has promoted SEM to invest 380.5 billion won to build a new building and install a flip hip PCB line at the Busan plant. The company already operates a line at Daejeon. This is the largest new facilities investment ever by Samsung Electro-Mechanics or by any Korean PCB maker for that matter.
The expansion project will proceed in stages, in step with expected increases in market demand. Initial production is scheduled to start up in the second of next year. When the line No.2 is fully operational(12-15 million pieces a month), the company will have a total monthly capacity of 24-26 million pieces. This will be about the same output as rivals in Japan and Taiwan, and SEM management believes that the company will emerge as the world's top producer of flip chip PCBs. nw

Samsung Electro-Mechanics CEO Kang Ho-moon