Seoul: Samsung Electro-Mechanics Co. announced a significant 81 percent increase in its third-quarter net profit, driven by strong demand for premium products within the artificial intelligence (AI) sector. The company’s net profit reached 224.9 billion won (US$156.9 million) during the July-September period, a notable rise from the 124.2 billion won reported in the same period last year, as detailed in a regulatory filing by the company.
According to Yonhap News Agency, the company’s operating profit for the third quarter improved by 15.7 percent year-on-year, totaling 260.3 billion won. Revenue also saw an increase, rising by 10.5 percent to reach 2.88 trillion won. These figures surpassed market expectations, as analysts had projected an average net profit of 193.2 billion won, based on a survey conducted by Yonhap Infomax, the financial data unit of Yonhap News Agency.
Samsung Electro-Mechanics attributed the growth in its component business, which saw a 15 percent increase in sales to 1.3 trillion won, to heightened demand for multilayer ceramic capacitors (MLCC). Additionally, the package solution and optical divisions reported sales of 593.2 billion won and 914.6 billion won, respectively.
Looking ahead to the fourth quarter, the company anticipates sustained demand for its premium products, particularly from the automotive electronics and AI sectors, indicating a positive outlook for continued growth in these areas.