2010 Record Year for Operation

Samsung Electro-Mechanics 2010 net profit up 95 pct YoY with MLCC, and LED products leading the way

samsung Electro-Mechanics Co. said its sales revenue for 2010 posted 6.968 trillion won and operating profit of 778.1 billion won with net income amounting to 554.7 billion won on consolidated basis. Compared to the 2009 record, sales and operating profit is up 26 percent and 61 percent respectively, while net profit is up 95 percent.
The Samsung affiliate said expanded sales of MLCC and other major products boosted the sales revenue, along with the increases in the sale of power switches and LED products.
The company said also contributing factors included reductions in costs through maximization of effective operations of the company’s facilities and equipment, which helped to increase net profit.
Its 4th quarter sales recorded 1.593 trillion won, up 3 percent YoY, operating profit 83.8 billion won, down 46 percent YoY and net profit 92.1 billion won, up 5 percent YoY. Operating profit was down due mainly to sluggish sales, the foreign exchange rates and cuts in prices of some products, the company said.
To review the 4th Qtr. results in detail, ICR( inductor condenser, and resistance) sales including those of smartphones, and other electronics products using MLCC expanded 13 percent YoY at 398 billion won, while the ACI(advanced circuit interconnection) sector chalked up 362 billion won in sales, up 6 percent YoY, thanks to brisk sales of CSP and other products using high-priced chips.
In the meantime, the CDS(circuit drive solution) sector recorded sales of 440 billion won up 7 percent YoY due to expanded sales of its power and network modules, while the OMS(opto & mechatronics solution) sector suffered reduced sales of 182 billion won, down 19 percent YoY due to sluggish sales of products including camera modules.
In the meantime, the company’s management policies are focused on achieving SEMCO 2 X, meaning speed, efficiency, market share and cost saving doubling them this year from last year to expand its global leadership in the marketing of its products overseas. In order to achieve the objectives for this year, the company decided to adopt “ki or spirit” to unite every officer and employee of the company in its drive to make company produce first-rate products and first-rate global company this year.
In October 2009, Samsung Electro-Mechanics was incorporated into the Dow Jones Sustainability World Index.
The Dow Jones Sustainability Index evaluates not only financial performance, but also such non-financial performances as transparency of corporate governance, eco-friendly management activities, and social contributions. Being included in this Index means Samsung Electro-Mechanics’ management policies and activities fully meet the global standards.
Samsung Electro-Mechanics actively incorporates evaluations and advice from customers, shareholders and business partners in its management practices.
The company also has made every effort to produce environmentally-friendly products, to create a pleasant and safe workplace for its employees, and to pursue mutual growth and prosperity with its partner firms. Samsung Electro-Mechanics pushes ahead with such eco-friendly businesses as the Low-carbon, Green City Development Project Agreement and the establishment of LED lighting systems for harbor facilities. The company has received the ‘Beautiful Partnership Award’ for 4 years in a row, in recognition of its constant efforts to ensure cooperation with its suppliers. Moreover, the company is also committed to social contributions, by engaging in a variety of social services to assist families from multi-cultural backgrounds in successfully adapting to Korean society.
Samsung Electro-Mechanics will provide cutting-edge electronic components to create a better and more convenient place in which to live, and will fulfill its role as a responsible corporate citizen, as described below.
Samsung Electro-Mechanics will post a significant level of qualitative growth through constant innovation and efficient use of resources.
Samsung Electro-Mechanics enjoyed a 5 trillion won of sales (consolidated) in 2009, the largest since its foundation, despite the global economic slowdown. nw

President Park Jong-woo of Samsung Electro-Mechanics Co.

Photo by courtesy of Samsung Electro-Mechanics Co.