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2019 1Q Earnings Release2019-04-30
2.1305 trillion won in revenue, 190.3 billion won in operating profit
- 7% increase in revenue, 25% decrease in operating profit compared to last quarter (‘18.4Q)
- 6% increase in revenue, 24% increase in operating profit compared to same quarter last year (‘18.1Q)
Operating profit decline compared to last quarter due to lower demand for IT products, revenue increase due to increased sales of advanced multi-cameras
2Q, expansion of component supply to China and greater ratio of high value products
Samsung Electro-Mechanics announced on the 30th that it has generated 2.1305 trillion won in revenue and 190.3 billion won in operating profit for 1Q on a consolidated basis.
Revenue increased by 7% but operating profit fell by 25% compared to 4Q of last year, but revenue increased by 6% and operating profit increased by 24% when compared to the same period last year (‘18.1Q).
Samsung Electro-Mechanics explained that operating profit fell compared to last quarter because of the effects of inventory adjustments for some MLCC (Multi-Layer Ceramic Capacitor) products resulting from a slower demand for IT products, but that revenue increased compared to last quarter and the same quarter last year due to expanded sales of high performance multi-cameras.
For 2Q, there are plans to expand the supply of camera modules with advanced functions to China. In particular, profitability will be increased by increasing sales of advanced IT products such as ultra large capacitance MLCC, and by focusing on the industrial and automotive sectors to respond to increasing demand.
※ Results by Business Area
Component Business Unit 1Q revenue was 836.3 billion won, representing a 7% reduction compared to the previous quarter due to the effects of inventory adjustments for some MLCC, but this represents an 11% increase compared to the same quarter last year due to the expanded supply of automotive and network products.
The policy in 2Q is to increase the supply of advanced IT products and expand the lineup of high reliability industrial and automotive MLCC to increase the proportion of high value products.
Module Business Unit recorded 951.2 billion won in revenue, representing a 38% increase compared to the previous quarter and a 6% increase compared to the same quarter last year due to expanded sales of multi-camera modules and the supply of new Wi-Fi standard Wi-Fi modules.
The plan for 2Q is to expand the supply of new products, such as 48 million pixel and high magnification optical zoom multi-cameras, to China.
Substrate Business Unit recorded 328.9 billion won in revenue, a 14% reduction over the previous quarter and an 8% reduction over the same quarter last year, due to lower sales of OLED-use RFPCB (Rigid Flex Printed Circuit Board).
Profitability will be improved by diversifying RFPCB products to include 5G antenna and camera module products, and increasing the proportion of high value package substrate products such as GPU, automotive, and network products.
※ Revenue by Business Unit
[Unit: 100 million won]
[Unit: 100 million won]
|Earnings Before Tax||1,719||2,377||28%↓||1,523||13%↑|