[Public Notice+] SMAC Temporarily Slumps in 1Q Due to COVID-19 Impact... "Net Profit Turns Positive"

[Asia Economy Reporter Hyunseok Yoo] Smac announced on the 18th that its consolidated sales for the first quarter amounted to 19.6 billion KRW, a 42% decrease compared to the previous year. Operating loss was 2.2 billion KRW, but net profit turned positive at 1.9 billion KRW.

As the COVID-19 pandemic spread globally, a temporary decline in sales occurred. Continuous confirmed cases were reported in major trading countries such as the United States, Germany, Italy, and the United Kingdom, and domestic economic conditions also temporarily worsened, hindering smooth operations and sales.

To proactively address issues such as recovering fixed costs due to decreased sales, Smac implemented extensive management rationalization, significantly reducing fixed costs and thereby decreasing the operating loss compared to the previous quarter. In non-operating areas, gains from foreign exchange valuation and derivative product valuation contributed to turning net profit positive. Although the COVID-19 impact is still expected to adversely affect overseas exports in the machinery business, domestic orders are recovering, and overseas orders have not been canceled but postponed. Therefore, sales are expected to significantly recover from the second half of the year when the COVID-19 situation stabilizes.

Additionally, domestic large corporations and public institution bids that were postponed are resuming, and substantial sales are expected to occur. Many manufacturing companies, which had delayed facility investments due to COVID-19, are also expected to activate investments, increasing demand for equipment. A Smac representative stated, “We expect performance to rebound once postponed transactions due to COVID-19 resume,” and added, “Based on our technological capabilities, we will seek opportunities to grow the company in COVID-19 related industrial fields such as GPS Tracking and automation business linkage.”

This content was produced with the assistance of AI translation services.