SEOUL, Jan. 27 (Yonhap) — Samsung Electro-Mechanics Co., a major electronics components maker in South Korea, on Wednesday said its fourth-quarter net profit in 2020 swung to the black from a year earlier on the back of increased sales of its products amid the growth of 5G and automotive sectors.
The Samsung Group affiliate reported a net profit of 204.9 billion won (US$185.4 million) for the October-December period, swinging from a loss of 21.1 billion won a year earlier.
The company said in a regulatory filing that it posted 252.7 billion won in operating profit for the fourth quarter, up 73 percent from a year ago. Revenue rose 16.6 percent on-year to 2.08 trillion won.
For the whole of 2020, Samsung Electro-Mechanics’ net profit jumped 18.1 percent on-year to 623.8 billion won. Operating income for the year was 829.1 billion won, up 11.9 percent from a year earlier, while sales climbed 6.4 percent on-year to 8.2 trillion won.
Samsung Electro-Mechanics said strong sales of multilayer ceramic capacitors (MLCCs) and package substrates boosted its profitability on the back of the expanding 5G communications market, while increased supply of rigid-flexible printed circuit boards for OLED products also helped its performance.
On a quarter-on-quarter basis, Samsung Electro-Mechanics said its fourth-quarter earnings were underachieving due to its customers’ inventory adjustments and weakness of the U.S. dollar.
Compared to the third quarter, its fourth-quarter sales and operating profit were down 6 percent and 18 percent, respectively.
By business sector, its component unit posted revenue of 964.5 billion won in the fourth quarter, up 24 percent from a year ago, as MLCC shipments for automotive solutions and Chinese smartphone makers increased.
Its module business posted sales of 564 billion won, down 4 percent from a year earlier due to weak seasonality for camera modules for flagship smartphones.
Its fourth-quarter revenue from the substrate business was 557.9 billion won, up 30 percent from a year ago, on increased demand of substrates used for mobile application processors and central processing units.