Samsung Electro-Mechanics’ Q1 OP up 28.7% on high sales of AI servers

[Courtesy of Samsung Electro-Mechanics Co.]

Samsung Electro-Mechanics Co. saw its first-quarter sales and operating profit soar by nearly 30 percent each from the previous year, thanks to robust demand for the Galaxy S24 series.

Samsung Electro-Mechanics announced on Monday that it posted 2.6 trillion won ($1.9 billion) in sales for the first quarter, up 29.8 percent from the same period a year ago. Operating profit gained 28.7 percent to 180.3 billion won during the same period, surpassing market expectations.

The company attributed the strong performance to a rise in demand for high-value-added multilayer ceramic capacitors (MLCC) used in industrial and electronic applications such as artificial intelligence servers, alongside the expansive supply of high-performing camera modules amid the launch of the new flagship smartphones.

Samsung Electro-Mechanics expects to sustain its robust performance into the second quarter, with ongoing growth in the need for high-value-added products, particularly MLCCs, for industrial and electronic applications.