Samsung Group is said to be carrying out a sweeping “management assessment” on underperforming affiliates in the electronics sector in the wake of the second-quarter earnings shock of its cash cow Samsung Electronics.
The audit division under Samsung’s Corporate Strategy Office, the conglomerate’s control tower, has recently began a review on Samsung Electro-Mechanics, a manufacturer of smartphone camera modules, according to Samsung Group.
The latest move is just another in a series of management reviews conducted on the conglomerate’s affiliates including Samsung Heavy Industries and Samsung Engineering.
“The poor business performance of affiliates, including those that supply smartphone parts to Samsung Electronics, seems to be a major reason for the conglomerate to proceed with the reviews,” a market analyst said.
The camera module business has gone downhill since the second quarter of 2013 when it reaped 222 billion won ($216 million) in operating profit.
