Samsung Electro-Mechanics Q3 Operating Profit 457.8 Billion KRW... 49% Increase YoY

Samsung Electro-Mechanics Suwon Plant
[Photo by Samsung Electro-Mechanics]

[Asia Economy Reporter Kim Heung-soon] Samsung Electro-Mechanics announced on the 27th that its consolidated operating profit for the third quarter of this year was preliminarily estimated at 457.8 billion KRW, a 48.9% increase compared to the same period last year. Sales reached 2.6887 trillion KRW, up 20.6% year-on-year. Compared to the previous quarter, sales increased by 213.2 billion KRW (9%) and operating profit by 118.5 billion KRW (35%).

Samsung Electro-Mechanics explained that the significant improvement in performance was due to increased sales of high value-added products such as small and high-capacity MLCCs (Multilayer Ceramic Capacitors) for mobile devices, industrial and automotive MLCCs, and high-spec semiconductor package substrates.

The Components division recorded sales of 1.3209 trillion KRW in the third quarter, making it the largest revenue-generating business unit. Sales increased by 34% year-on-year and 11% quarter-on-quarter due to expanded supply of high value-added MLCCs for smartphones, industrial, and automotive applications.

The Modules division posted sales of 787.4 billion KRW, down 3% from the previous quarter due to weakened demand in the Greater China smartphone market, while the Substrate division recorded sales of 580.4 billion KRW, up 24% quarter-on-quarter due to increased supply of semiconductor package substrates.

The Substrate division’s sales in the third quarter increased by 28% year-on-year and 24% quarter-on-quarter to 580.4 billion KRW.

Regarding the outlook for the fourth quarter, Samsung Electro-Mechanics stated, "Sales of some products are expected to decline due to year-end set inventory adjustments," but added, "Demand for high value-added products such as smartphone, industrial, and automotive MLCCs and 5G antenna package substrates is expected to remain solid."

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