Samsung Electro-Mechanics logs steep drop

Samsung Electro-Mechanics Co., a South Korean industrial parts maker, reported Tuesday that its second-quarter earnings shrank to less than one-third of its income a year earlier.

Net profit stood at 54.1 billion won ($51.4 million) in the April-June period, compared with 180.1 billion won a year earlier, it said in a regulatory filing.

Sales fell 12 percent from one year ago to 1.7 trillion won with operating profit nosediving 72 percent to 87.1 billion won, it said.

Samsung Electro-Mechanics, an affiliate of Samsung Electronics Co., said that slumping demand for TV components offset growing demand for smartphone and camera parts.

The drop in second-quarter earnings resulted from feeble demand for consumer electronics products worldwide and intensifying competition from rivals, coupled with the ascent of the local currency against the U.S. dollar, it said. (Yonhap)