SPG Achieves Record Quarterly Earnings... Growth in High-Value-Added Product Lines

[Asia Economy Reporter Hyungsoo Park] SPG has achieved its highest quarterly performance since its establishment.

SPG announced on the 10th that its consolidated sales for the third quarter of this year reached 109.1 billion KRW, and operating profit was 7.5 billion KRW, increasing by 8.9% and 44.6% respectively compared to the previous quarter. Compared to the same period last year, sales and operating profit increased by 13% and 6.5%, respectively. Earnings from continuing operations before income tax expenses and quarterly net profit increased by 115.1% and 204.2%, respectively, compared to the previous quarter.

An SPG official explained, "Our main products can be largely divided into industrial geared motors and home appliance fan motors," adding, "Operating profit increased as sales of domestically produced industrial standard geared motors rose."

He said, "Of the 7.1 billion KRW operating profit on a consolidated basis in the third quarter, about 1.4 billion KRW or more was from Smart Cara, which was a subsidiary at the time," and explained, "Since Smart Cara has been excluded from the consolidated companies starting this year, the pure operating profit growth rate of SPG alone in the third quarter is over 30% compared to the same period last year."

He continued, "We are currently making continuous efforts to increase the sales share of standard geared motors, which have high added value, within our sales composition as a policy," and added, "We also plan to aggressively raise prices for home appliance fan motors, which have relatively low added value, while maintaining the existing sales scale."

He forecasted, "We are about to start full-scale sales of fan motor modules (including controllers) applied to cleanrooms such as FFU and EFU," and predicted, "Significant improvements in operating margins are expected in the fan motor segment as well."

SPG has begun generating some new sales from its new growth engine product, the small-sized precision reducer (SH), and expects stable sales growth of medium- to large-sized precision reducer (SR) products both domestically and internationally. The growth trend and profit margin improvement effects are expected to continue going forward.

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