Better-than-Expected Performance

Samsung Electro-Mechanics surpasses a record high of 200 billion won in operating profit on a quarterly basis

Samsung Electro-Mechanics achieved a better-than-expected business performance for the 3rd quarter to surpass a record high of 200 billion won in operating profit on a quarterly basis. The Korea telecommunications and digital component maker posted 1.548 trillion won in sales, 207 billion won in operating profit and 123.3 billion won in net profit in consolidated financial statements.
Compared with the previous quarter, sales were up 30 percent, and operating profit and net profit jumped 235 percent and 367 percent during the third quarter, respectively. Given a record-high performance recorded in the previous quarter, Samsung Electro-Mechanics continued its feat by raising sales by 18 percent as well as expanding operating profit and net profit 61 percent, respectively.
Despite such unfavorable business conditions as the strong won against the dollar and a rise in raw material import prices, Samsung Electro-Mechanics saw a rise in mobile phone, LCD TV sets supplies with major buyers and its mainstay business areas, including MLCC (Multi-layer ceramic condenser) and semiconductor substrates, have strengthened presence in the global markets, Samsung Electro-Mechanics officials said. Such in-house efforts to strengthen constitution, including efficient utilization of resources and activities designed to ramp up productivity have added up to enhancing its competitive edge, they added.
In the meantime, recognizing the fact that such favorable factors as the Korean exchange rate and its clients’ rising presence in the global market are reflected in its 3rd quarter performance, Samsung Electro-Mechanics plans to predict market movements in a more thorough manner, they said. Samsung Electro-Mechanics has decided to exert all its energies to differentiate technology competiveness and optimize costs and tide over external and internal uncertainties, the officials added.
Taking a look at the 3rd quarter performance specifically, the substrate division saw sales surging to 391.8 billion won, a 16 percent jump from 338.7 billion won in the second quarter to surpass 1 trillion won in combined sales in the first nine months of this year.
The LCR (inductor, capacitor, resistor) division posted 352.2 billion won in sales, up 20 percent from 292.7 billion won in the previous quarter, ushering in an era of 300 billion won in sales thanks to a surge in the demand for Samsung Electro-Mechanics’ MLCC products, used for such high-growth items as LCDs and mobile phones.
The OMS (opto & mechatronics solution) division registered 218.9 billion won in sales, up 4 percent from the previous quarter thanks to a rise in the demand for vibration motors sued for more than 5-mega high-definition camera modules and touch screens, while the CDS (circuit drive solution) division saw a 23 percent jump to 402.6 billion won in sales in a boom in the whole business areas including power and digital tuner. nw

An aerial view of Samsung Electro-Mechanics Suwon headquarters-cum plant serving as a center of R&D and engineering.