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2016 1Q Earnings Release2016-04-26
Sales and operating profit reached KRW 1 trillion 604.3 billion and KRW 42.9 billion, respectively
- Sales and operating income increased by 18% and 108% compared to the last quarter (Q4 of 2015)
In Q2, parts supply will be expanded to strategic accounts and Chinese markets to diversify product lines covering items for industrial/automotive purposes, etc.
On the 26th, Samsung Electro-Mechanics announced that its sales and operating income have reached KRW 1.6043 trillion and KRW 42.9 billion, respectively, in the first quarter. Its sales has increased by 18% and 108% for its operating profit against the fourth quarter of last year. Compared to the same quarter of last year (2015, 1Q), the sales record increased slightly (by 0.1%) while the operating profit decreased by 50%.
Samsung Electro-Mechanics saw an increase in its sales for camera modules, MLCC (Multilayer Ceramic Capacitor) and wireless charging modules as its strategic accounts launched a new model. Its sales from Chinese accounts have also increased against that of last quarter’s. Meanwhile, the company’s operating income has fallen short of the market expectations because of the decrease in the sales of the parts for existing models and the limited set production of overseas accounts.※ Sector-wise Performance and Future Strategies
[Digital Module Sector] recorded KRW 685.9 billion in sales in the first quarter with the sales of camera modules, Wi-Fi modules and wireless charging modules as the new model—using the strategic accounts—was rolled out. This result indicates a 20% jump against the last quarter and 1% against the same quarter of last year. For the camera modules, the company plans to expand the sales from Chinese accounts by releasing a new product, such as dual camera modules, and by strengthening the product lineup and securing new global accounts for the automobile modules.
For the wireless charging modules, it plans to maintain its focus on flagship models while expanding the kinds of product to be supplied by strengthening the competitiveness of core parts and differentiating the designs for cellular FEM (Front-End Modules).
[Chip Parts Sector] recorded an 18% surge in the quarter-on-quarter revenue, thus reaching KRW 525.4 billion. This is due to the release of new flagship models of the strategic accounts and the expanded sales of chips for automobile and industrial purposes.
For MLCC, the company plans to expand the product line from capacitors for ultrahigh capacity and ultra-light high value-added IT sectors to those for industrial/automotive purposes, as well as actively respond to the increased demands in emerging markets, including China, by quickly stabilizing new plants in foreign countries.
For EMC products, the company plans to secure new overseas customers by developing new products and strengthening its business competitiveness by expanding differentiated products such as an ultra-small high-frequency inductor, a noise-cancelling filter, etc.
[Board Sector] ended up with KRW 346 billion in revenue, or a 4% drop quarter-on-quarter and an 11% drop year-on-year because of the weakening production of overseas accounts. However, the sales of package boards for APS and mainboards for flagship new models by its strategic accounts spiked up greatly. From the second quarter, the company expects to expand the supply of memory boards for a flagship new model APS and enter the market with CPU package boards in time for a next-generation new model, which would be released in the following second half of the year.
For HDI boards, it plans to enhance the price competitiveness by utilizing its foreign bases and encouraging greater participation of Chinese mobile business accounts in the development process of a new model. In addition, the company will diversity applications such as wearable devices, SSD and high-capacity server boards, etc.
※ Quarterly Business Performance
[Unit: KRW hundred million]
|Classification||Year 2015||Year 2016||QoQ||YoY|
|Pre-tax Profit||769||△ 77||452||529↑||317↓|