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2023.01.25

Samsung Electro-Mechanics Q4 2022 Earnings

▶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)

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