Samsung Electro-Mechanics Q1 Operating Profit Drops 66% to 140.1 Billion KRW... "Improvement Expected in Q2"

Focus on Expanding Electric Vehicle Market Share and Diversifying Clients in Q2

Samsung Electro-Mechanics announced on the 26th that it recorded sales of 2.0218 trillion KRW and an operating profit of 140.1 billion KRW in the first quarter of this year.

Sales and operating profit increased by 3% and 38% respectively compared to the previous quarter, but decreased by 23% and 66% compared to the same period last year. Due to the continued weak demand for IT devices such as PCs amid the global economic downturn, sales and operating profit significantly declined compared to a year ago.

The Components Division posted first-quarter sales of 825.5 billion KRW, down 1% from the previous quarter and 33% from the same period last year. Although MLCC shipments to China increased and supply of new electronic components expanded, overall weak set demand and exchange rate effects worsened performance. In the second quarter, the company plans to expand supply of high value-added products such as small and ultra-high capacity MLCCs in response to new smartphone launches in China, and strengthen the lineup of automotive products with steady demand to enhance customer responsiveness.

The Optical Communication Solutions Division recorded sales of 798.6 billion KRW, a 22% increase from the previous quarter, driven by the launch of flagship new models from strategic customers, increased supply of high-performance camera modules such as high-resolution OIS and 10x folded zoom, and increased sales of automotive camera modules. The year-on-year decline was limited to 8%. Although the second quarter is a seasonal low for the Optical Communication Solutions Division, the company plans to respond by expanding supply of high-performance camera modules and automotive products such as autonomous driving to overseas customers.

The Package Solutions Division posted first-quarter sales of 397.6 billion KRW, down 17% from the previous quarter and 23% from the same period last year. The supply of package substrates decreased due to weak demand for IT sets such as smartphones and PCs and continued memory inventory adjustments. In the second quarter, the company plans to expand supply of package substrates for mobile APs and memory, and increase the business proportion of high value-added products such as servers and automotive.

A Samsung Electro-Mechanics official stated, "In the second quarter, we plan to focus on expanding the proportion of automotive products in each business and diversifying customers," adding, "We expect sales to increase compared to the first quarter by expanding sales of high value-added products such as small and ultra-high capacity MLCCs following new product launches by overseas customers including China."

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