Samsung Electro-Mechanics (Samsung Electro), the component affiliate of Samsung, said Thursday that it saw a turnaround in operating profits during the October-December period on the back of expanded clients and favorable currency moves.
In a statement, Samsung Electro said operating profit during the fourth quarter of last year was 34.4 billion won with quarterly sales of 1.83 trillion won. Operating profit returned to the black, while its quarterly sales were up 6 percent from a quarter earlier.
“Expanded selling channels other than Samsung Electronics, plus favorable currency moves, benefited us,” Samsung Electro spokesman Ko Jin-woo said in the statement.
For all of last year, the company reported 7.14 trillion won in sales, down by 13 percent, year-on-year, it said.
The company, which sells components to be used in handsets such as wireless, network and camera modules, said it plans to find new business opportunities in China this year to continue its business momentum.
For better cost cuts, Samsung Electo said it will restructure its unprofitable business units and expand its business operations in Vietnam, the country in which its biggest customer, Samsung Electronics, operates handset and appliance factories.
Samsung Electro said it will purchase 2 million of its own shares to cut off concerns by investors about corporate sustainability. Samsung Electro has set 750 won as its dividend payout per share.
