Samsung Electro-Mechanics Q1 Operating Profit at KRW 200.6 Billion, Up 9.2% Year-on-Year

Samsung Electro-Mechanics announced on April 29 that, on a consolidated basis, its provisional operating profit for the first quarter of this year was KRW 200.6 billion, representing a 9.2% increase compared to the same period last year.

Samsung Electro-Mechanics Suwon Plant view. Photo by Samsung Electro-Mechanics

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Sales reached KRW 2.7386 trillion, up 4.8% year-on-year. Net profit was KRW 141.6 billion, down 24.1%. The operating profit for this quarter was close to the market's forecast of KRW 201.4 billion.

Samsung Electro-Mechanics explained that both sales and operating profit increased year-on-year and quarter-on-quarter due to the launch effect of flagship smartphones, expanded supply of high-value-added multilayer ceramic capacitors (MLCCs) for industrial and automotive applications such as AI servers, and high-performance camera modules such as folded zoom.

For the second quarter, demand in the high-value-added product market, including MLCCs for AI servers and industrial and automotive use, as well as package substrates for AI accelerators, is expected to continue to grow. Samsung Electro-Mechanics stated that it plans to focus its business capabilities on high-end products with anticipated sustained growth and to strengthen its responsiveness to customers.

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