◇ Turnover of KRW 2,224.5 billion, and operating profit of KRW 164.6 billion
- Turnover has increased by 21% and operating profit by 19% compared to previous quarter (4Q of 2019)
· Expansion in high specification camera module turnover for new flagship models of strategic accounts, and increase in turnover of packaged substrate for PC, industrial MLCC, and 5G telecommunication modules
- Increase in turnover by 8%, decrease in operating profit by 32% from same period in the previous year (1Q of 2019)
· Impact due to decrease in MLCC ASP
◇ Improve market responsiveness to demand fluctuations in the 2nd quarter
- Strong demand expected to continue for PC and server, and mobile demand expected to decrease due to COVID-19
As of the 1st quarter, Samsung Electro-Mechanics announced on the 28th that it recorded a turnover of KRW 2,224.5 billion and operating profit of KRW 164.6 billion in the 1st quarter of this year on a consolidated base. Turnover increased by 21% and operating profit by 19% from the previous quarter (4Q of 2019). Samsung Electro-Mechanics explained that it expanded its supply of high value-added camera module for new flagship smartphones by its strategic accounts, and turnover of its PC and industrial MLCC (Multi-Layer Ceramic Capacitor) increased as a result of an increase in sales compared to the previous quarter.
Turnover increased by 8% compared to the previous quarter (1Q of 2019), but as a result of a decrease in MLCC ASP (average sales price), its operating profit decreased by 32%.
Although the untact services market is expected to grow in the 2nd quarter, due to the global economic recession resulting from COVID-19, it expects turnover to decrease compared to the 1st quarter.
Samsung Electro-Mechanics is planning to strengthen its market responsiveness in preparation for uncertainty regarding demand fluctuations.
[Results by Quarter]
(Unit : KRW 100 million)
T/P (Turn a profit)
□ 1Q result and forecast by business unit
Turnover of the Components Unit in the 1st quarter increased by 11% compared to the previous quarter and 2% compared to the same period in the previous year due to expansion in industrial MLCC turnover, including high-capacity products and servers to strategic accounts, resulting in KRW 857.6 billion.
Although it expects demand for smartphones and electronic products to decrease as a result of COVID-19 in the 2nd quarter, strong demand for PC and server products is expected to continue.
Samsung Electro-Mechanics plans to operate its factories flexibly considering market supply and demand.
The Module Unit recorded turnover of KRW 983.2 billion, showing an increase of 53% compared to the previous quarter and 4% compared to the same period in the previous year, as a result of an increase in high specification multicamera modules and WiFi communication modules for new flagship models of strategic accounts.
Camera module turnover is expected to decrease as a result of COVID-19 and seasonality in the 2nd quarter, but it plans to recover turnover by increasing sales of high specification camera modules, including folded zoom, for its Chinese accounts.
Although turnover for its Substrate Unit decreased by 11% compared to the previous quarter due to a decrease in OLED RFPCB supply, an increase in turnover for PC CPU and 5G antenna packaged substrates resulted in turnover of KRW 383.7 billion, which is a 37% increase compared to the same period in the previous year.
With demand for PC packaged substrate is expected to stay strong in the 2nd quarter, it plans to increase sales of high value-add packaged substrate, including 5G and thin sheet CPU.
[Turnover by Business Unit]
(Unit: KRW 100 million)