Seoul: Samsung Electro-Mechanics Co., an electronic component affiliate of Samsung Group, announced on Tuesday a significant decline in its third-quarter net profit, which fell nearly 25 percent from the previous year. The decrease is attributed to the impact of a robust local currency.
According to Yonhap News Agency, the company’s net income for the July-September period was 124.2 billion won (US$89.9 million), marking a 24.7 percent drop from the 164.9 billion won recorded a year earlier. Despite this decline in net profit, Samsung Electro-Mechanics reported a 19.5 percent increase in operating profit, amounting to 224.9 billion won, and an 11 percent rise in revenue, reaching 2.61 trillion won.
The company noted that the net income for the third quarter was adversely affected by a foreign exchange loss, resulting from the strong Korean won against the U.S. dollar. In terms of revenue growth, there was an increase across all applications, particularly in industrial and automotive multi-layer ceramic capa
citors used for artificial intelligence (AI) and servers.
Looking ahead, Samsung Electro-Mechanics anticipates a slowdown in sales during the fourth quarter due to seasonal declines in component sales. However, the company remains optimistic about the continued demand for high-performance products, especially those related to AI and vehicle components.