Samsung Electro-Mechanics
Q4 2022 Earnings
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▶Revenue of KRW 1.9684
trillion and operating income of KRW 101.2 billion in Q4
▶Revenue of KRW 9.4246
trillion and operating income of KRW 1.1828 trillion in 2022
▶Plans to expand growth
businesses centered on high value-added products such as for automobiles and
servers in 2023
Samsung
Electro-Mechanics posted revenue of KRW 1.9684 trillion and operating income of
KRW 101.2 billion on a consolidated basis in the fourth quarter of 2022.
This
marks QoQ decreases of KRW 415.3 billion (17%) in
revenue and KRW 209.8 billion (67%) in operating income, and YoY decreases of KRW 461.5 billion (19%) in revenue and KRW
215 billion (68%) in operating income.
Q4
earnings fell QoQ and YoY
as the supply of major products such as MLCC (Multi-Layer Ceramic Capacitor)
for IT, camera modules, and BGA (Ball Grid Array: package substrates for mobile
devices) decreased due to slowing set demand and the off-season effect.
In
fiscal year 2022, the company recorded revenue of KRW 9.4246 trillion and
operating income of KRW 1.1828 trillion, down 3% and 20% compared to the
previous year, respectively.
(※ 2021 earnings: Revenue of KRW 9.675
trillion, operating income of KRW 1.4869 trillion)
Although
business uncertainties are expected to continue in 2023, Samsung
Electro-Mechanics plans to focus on improving its business structure by
expanding businesses related to growth markets such as automobiles and servers.
Earnings
by Quarter
(Unit: KRW 100M)
Earnings
and Forecast by Business Unit
The
Component Unit's
Q4 revenue was KRW 833.1 billion, down 10% from the previous quarter. Samsung
Electro-Mechanics posted increased sales in automotive MLCCs thanks to the rise
in the supply of high value-added MLCCs such as for ADAS and electric vehicles,
but revenue decreased due to delayed demand recovery for IT products such as smartphones and PCs and inventory adjustments.
Samsung
Electro-Mechanics will strive to secure profitability by improving productivity
and operational efficiency, and to improve earnings by expanding the lineup of
high-end automotive products including high-temperature and high-pressure
models.
The
Optics & Communication Solution Unit recorded KRW 655.5 billion in
revenue, down 27% from the previous quarter. Despite the expanded supply of
automotive camera modules to overseas customers, the supply of IT camera
modules decreased due to the off-season effect.
As
the demand for high-performance camera modules is forecast to increase, Samsung
Electro-Mechanics plans to increase the supply of products featuring new
technologies such as high-pixel/high-magnification zoom. Furthermore, the
company seeks to expand the automotive camera module business by diversifying
partners.
The
Package Solution Unit posted
Q4 revenue of KRW 479.8 billion, up 0.2% YoY on the
back of increased supply of FCBGA for networks and automobiles.
Although
demand for some applications such as smartphones and
PCs is projected to decrease this year, the high-end package substrate market
for servers and automobiles is forecast to see continued growth.
Samsung
Electro-Mechanics plans to expand the supply of high value-added products with
differentiated technologies, such as implementing multi-layers and
microcircuits, starting with the server package substrate that the company
began mass production for the first time in Korea last year.
Revenue
by Business Unit
(Unit: KRW 100M)
2022 with Samsung Electro-Mechanics
