Samsung Electro swung to profit in Q3

By Kim Yoo-chul

Samsung Electro-Mechanics (Samsung Electro), the parts-making affiliate of Samsung, said Thursday that it swung into the black for the third quarter of this year as its move to diversify its client base has been successful.

In a regulatory filing, Samsung Electro said it generated 1.60 trillion in sales for the three months ended Sept. 30. Operating profit was 100.1 billion won, a major turnaround year-on-year.

“Demand for chip parts and dashboard for packaging remained solid. Vigorous efforts to save costs and the weaker won against major currencies also benefited the company,” spokesman Ko Jin-woo said.

Ko said Samsung Electro will not stop exploring chances to cut its dependence on Samsung Electronics for business diversification.

“Samsung Electro plans to boost the firm’s footstep overseas by focusing more on new applications for new customers,” according to the spokesman.

For divisions, its digital module business unit, which mainly handles camera modules, plans to secure more clients in China. Amid the growing popularity of electric vehicles, the Samsung affiliate is also seeing opportunities for in vehicle camera modules.

In the wireless module division, Samsung Electro said it will expand the sale of its wireless charging products beyond mobile phones to vehicles and infrastructure applications.

With its chip component division, the profitability of which is subject to orders from leading phone makers, Samsung Electro plans to collaborate with the group’s battery unit, Samsung SDI, to expand its MLCC lineup.

Samsung Electro said it will continue efforts to introduce budget models to remain adaptive amid a challenging market situation.

“The company’s facilities in Vietnam are still undergoing a ramp-up period. Samsung Electro will try hard to stabilize manufacturing at the plant as quickly as possible,” said Ko.