SEOUL, Nov. 4 (Korea Bizwire) — Automotive electronics is emerging as a source of optimism for Samsung Electronics Co. and LG Electronics Inc. amid sluggish semiconductor and TV sales.
Samsung’s subsidiary Harman International, a major maker of in-car entertainment systems and car audio equipment, posted sales of 3.63 trillion won and operating profits of 310 billion won (US$217 million) in the third quarter of this year.
Year on year, sales and operating profits rose by 51 percent and 160 percent, respectively. Quarter on quarter, sales and operating profits grew by 22 percent and 210 percent.
Harman ranked No. 1 in the global digital cockpit market last year with a share of 25 percent.
Meanwhile, LG’s vehicle component solutions (VS) division enjoyed sales of 2.35 trillion won and operating profits of 96.1 billion won in the third quarter of this year.
Its sales rose by 45.6 percent from a year ago, hitting the highest level in its history. It also posted operating profits for two consecutive quarters.
“When it comes to LG’s automotive electronics business, the growth in sales, together with the growth of the market, clearly appear to have exceeded the burden of fixed costs,” said Kim Kwang-soo, an analyst at eBEST Investment & Securities.
Kevin Lee (firstname.lastname@example.org)