Record operating profit of 4.41 trillion won ($3.9 billion) on revenues of 34.64 trillion won ($31.2 billion)
Samsung Electronics Co., Ltd. today announced revenues of 34.64 trillion Korean won ($31.2 billion) on a consolidated basis for the first quarter ended March 31, 2010, a 21 percent increase year-on-year. For the quarter, the company posted a net profit of 3.99 trillion won ($3.5 billion).
Consolidated operating profit for the quarter was a record 4.41 trillion won ($3.9 billion), a 643 percent increase year-on-year. The figure tops the previous high of 4.22 trillion won ($3.8 billion) in the third quarter 2009.
In its earnings guidance disclosed on April 6, Samsung estimated first-quarter consolidated revenues would reach approximately $30 billion with an operating profit of 4.3 trillion won ($3.9 billion).
The company’s strong performance in the first quarter was driven by significant improvements in the components businesses, especially semiconductors, and strong earnings in the set businesses.
Mr. SangSuk Roh, President of Samsung Levant said: “This tangible increase in the profit of Samsung Electronics is an indicator of the increased demand on Samsung products due to its developed and advanced technologies that meet our customers’ needs. This year we will witness the launch of many Samsung home appliances and other technologies that will be the first of its kind in global electronics market.”
Robert Yi, Vice President and head of Samsung Electronics’ Investor Relations Team, said he is cautiously optimistic second-quarter earnings will improve, due to continued strong memory chip markets, favorable LCD panel demand and increased sales of set products such as mobile handsets and TVs.
“We will continue to widen the gap with competitors in the memory business, improve profitability in the LCD business, and strengthen our competiveness and market dominance in the handset and TV businesses,” Yi said.
Samsung’s Semiconductor Business recorded consolidated operating profit of 1.96 trillion won ($1.7 billion) in the first quarter, up from an operating loss of 710 billion won ($626 million) a year ago. Revenue reached 8.20 trillion won ($7.2 billion), a 57 percent increase year-on-year.
Supply constraints amid strong demand in the DRAM market led to the rise of DRAM prices, and there was a steady demand in the NAND market due to strong demand for smart phones and mobile application products.
The LCD Business recorded an operating profit of 490 billion won ($432 million) on revenue of 6.85 trillion won ($6.04 billion), up 40 percent year-on-year. Despite traditionally weak seasonality, shipments increased significantly from a year ago.
Samsung plans to enhance profitability by expanding sales of differentiated products in the second quarter, including LED, 3D, 240Hz and Slim TV panels.
The Telecommunication businesses – including mobile handsets and telecommunication networks – posted an operating profit of 1.10 trillion won ($1 billion) on revenue of 9.18 trillion won($9 billion). The operating profit margin was 12 percent.
Strengthened premium product lineup and growth in emerging markets including India and CIS countries enabled Samsung to ship 64.3 million mobile handsets and outperform the market.
Samsung’s Digital Media businesses – including Visual Display and Digital Appliances – posted an operating profit of 520 billion won ($458 million) on revenue of 12.61 trillion won ($11.12 billion).
In flat panel TVs, Samsung recorded shipments of 8.4 million units, thanks to the successful launch of 3D TVs in the global market and the strong penetration of LED TVs in developing markets.
Digital Appliance sales rose 21 percent from last year as a result of demand recovery and strong sales of premium refrigerators and drum washing machines.
No comments:
Post a Comment