Samsung Electro-Mechanics records 17% YoY growth in Q4, 2020

by Mohit

Samsung Electro-Mechanics a major electronics components maker in South Korea. Recently, its fourth-quarter net profit in 2020 turned to the black from a year earlier on the back of increased sales of its products amid the growth of 5G and automotive sectors.

The Samsung Group affiliate reported a net profit of  $228 million over the previous three months, turning from a loss of $1.8 billion a year earlier.

For its 4Q performance on a combined basis, Samsung Electro-Mechanics revealed on the 27th that it recorded sales of KRW 2.0864 trillion and an operating income of KRW 252.7 billion. Revenue increased 16.6 percent on-year to 2.08 trillion won.

In the year 2020, Samsung Electro-Mechanics’ net profit jumped 18.1 percent on-year to 623.8 billion won. Operating income for the year was 829.1 billion won, up 11.9 percent from a year earlier, while sales increased 6.4 percent on-year to 8.2 trillion won.

Samsung Electro-Mechanics said strong sales of multilayer ceramic capacitors (MLCCs) and package substrates boosted its profitability on the back of the expanding 5G communications market, while the increased supply of rigid-flexible printed circuit boards (RFPCB) for OLED products also helped its performance.

Compared to the third quarter, its fourth-quarter sales and operating profit were down 6 percent and 18 percent, respectively.

Its fourth-quarter revenue from the substrate business was 557.9 billion won, up 30 percent from a year ago, on increased demand for substrates used for mobile application processors and central processing units.

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For the first quarter of 2021, Samsung Electro-Mechanics expected all of its business units to see improved sales compared with the previous quarter, except its substrate business as RFPCB sales are likely to decline on low seasonal demand.

Samsung Electro-Mechanics said it plans to expand capital expenditures for this year, adding that its new plant in Tianjin, China, has completed the setup of initial facilities and is preparing for mass-production.

(Via)

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