이 기사는 2022년 02월 07일 07:37 thebell 에 표출된 기사입니다.

Samsung Electronics’ Harman, a maker of connected car and audio systems, earned 590 billion won ($491.5 million) in operating profit in 2021, the highest since it was acquired by the South Korean tech giant in 2016.

It is the first time in five years that Harman’s annual operating profit surpassed the 500 billion won mark. With revenue of slightly more than 10 trillion won, its operating profit margin jumped to 5.9%.

Harman’s financial performance steadily improved in the first three years post-acquisition, with revenue increasing from 6.56 trillion won in 2017 to 10.07 trillion won in 2019 and operating profit growing from 40 billion won to 320 billion won in the same period.


However in 2020, its revenue and operating profit fell to 9.18 trillion won and 50 billion won respectively due to the impact of the Covid-19 pandemic and global chip shortages that affected the auto industry.

A strong recovery in Harman’s performance last year was largely thanks to the overall revival of the economy, although its operating profit is still below the 2016 level at $610 million.

Samsung Electronics acquired Harman in November 2016 for $8 billion, making a major push into the auto electronics market. The deal was also symbolic as it marked the first acquisition under Lee Jae-yong, the company’s vice chairman.

Harman provides connected car and audio systems to global automakers, counting Mercedes-Benz, BMW, Fiat Chrysler, Audi and Volkswagen among its customers.

Since the acquisition of Harman, Samsung Electronics has continued efforts to improve profitability by offloading non-core assets and boost synergies. They worked together to develop Harman’s digital cockpit, an in-car digital display, and 5G-based telematics control units.

With a successful post-acquisition integration of Harman in the past five years, industry observers say Samsung Electronics might be ready to move to the next step to grow its automotive electronics business.

Some expect Samsung Electronics to explore strategic acquisition opportunities that can create synergies with Harman. (Reporting by Hye-ran Kim)