Samsung Electro-Mechanics Q3 net jumps on demand recovery

Samsung Electro-Mechanics Co., a major electronics components maker in South Korea, on Monday reported robust third-quarter earnings on firm demand amid the novel coronavirus pandemic.

The Samsung Group affiliate chalked up a net profit of 240 billion won ($212.5 million), up 119.4 percent from a year earlier.

The company said in a regulatory filing that it posted 302.5 billion won in operating profit for the July-September period, up 59.9 percent from a year ago. Sales rose 3.3 percent on-year to 2.28 trillion won.

Compared with the second quarter, its operating profit soared 215 percent, while sales increased 26 percent.

Strong sales of multilayer ceramic capacitors (MLCCs) and package substrates boosted its profitability, the company said.

By sector, its component unit posted a revenue of 983.2 billion won, up 20 percent from a year ago, as major smartphone manufacturers released new models, boosting its MLCC sales.

Its module business posted sales of 852.7 billion won, down 9 percent from a year earlier due to an overall demand decline in the smartphone market amid the pandemic. However, the figure was a 41 percent increase from the previous quarter.

Its revenue from the substrate business was 452 billion won, down 1 percent from a year ago.

Samsung Electro-Mechanics expected sales growth to continue in the fourth quarter with solid demand for its MLCC products and package substrates. (Yonhap)