South Korean electronics manufacturer Samsung Electro-Mechanics reported fourth-quarter net income of 208.4 billion won ($160 million), marking an 81% increase from the previous quarter despite softer demand in key segments.
Sales declined 5% quarter-over-quarter to 2.49 trillion won ($1.9 billion), driven by weakness in the IT component business as customers adjusted year-end inventories. Operating profit dropped 49% to 115 billion won ($88 million), with margins compressed to 4.6% from 8.6% in Q3.
The company’s component division, which generates 43% of revenue, saw a 10% sequential decline as mobile, PC and consumer electronics demand softened. However, automotive components maintained growth momentum supported by electric vehicle adoption.
Looking ahead, Samsung Electro-Mechanics aims to expand its high-end product portfolio, particularly in AI server and EV components. The company announced plans to increase its dividend to 1,800 won per share, up from 1,150 won in 2023, citing improved earnings.
While maintaining an optimistic outlook for automotive and AI-related demand in 2025, management remains cautious about near-term IT market conditions as inventory normalization continues.
The results come as Samsung Electro-Mechanics executes a strategic shift, having discontinued its communication module business in 2024 to focus on core growth areas.
