Samsung Electro-Mechanics see profits rise 60%
Q3 operating income at 302.5 billion won
Samsung Electro-Mechanics has posted operating profits of 302.5 billion won and sales of around 2.29 trillion won in the third quarter.
It is a rise of 60% and 3%, respectively, year over year, the company said.
It also beat South Korean analysts’ consensus of 256.1 million won in operating profits and 2.22 trillion won in sales.
Samsung Electro-Mechanics said it expects growth in the fourth quarter as well, thanks to demand for premium multi layer ceramic capacitors (MLCC).
In the third quarter, the company saw high demand for small, high-capacity MLCCs as well as package substrates for mobile application processors and CPUs. This trend will continue to the next quarter, the company said.
Demand from Samsung Electronics rose in the quarter thanks to it launching new smartphones.
The recovery of the global automobile industry also increased demand for auto-component MLCC.
Overall, the component business, which includes MLCC, saw sales rise 20% year over year.
Samsung Electro-Mechanics’ module business, which sells cameras for smartphones, saw sales decline 9% year over year.
It did increase 41% compared to the previous quarter, however, thanks to launch of the Galaxy Note 20 Ultra which uses the company’s high-end camera modules such as those for folded zoom.
It is also attempting to ship more 5G mmWave antenna modules, which began production in the third quarter, to different customers.