Samsung Electronics Posts Best Ever Quarterly Profits
Samsung Electronics has reported a 21 percent rise in its second-quarter revenues of KRW47.6 trillion, while operating profits jumped by 79% to KRW6.72 trillion.
Net profit jumped by 48% to its best ever level of KRW5.19 trillion,
Samsung posted solid sales and maintained its profit growth in the second quarter across all business segments, excluding semiconductors, amid lingering global business uncertainties. Digital Media & Communications -- comprising the Consumer Electronics and IT & Mobile Communications business sectors -- accounted for KRW36.57 trillion in sales, up 37 percent year-on-year.
By business unit, the Mobile Communications Business was one of the leading
growth drivers in the June quarter with KRW20.52 trillion in revenue.
The Visual Display Business also contributed to earnings gains with its diverse portfolio of TV models for both developed and emerging markets with KRW8.58 trillion in revenue for the quarter.
"Despite a difficult business environment, we achieved stable profits in the second quarter through our differentiated products and competitive technology," said Robert Yi, Senior Vice President and Head of Investor Relations. "As we move into the second half, continued fiscal instability in Europe and its effect on the global economy will result in the possibility of a slower-than-expected recovery and intensified market competition."
Mr. Yi added that despite the economic uncertainties, "Samsung will enhance the competitiveness of our main businesses and reinforce our value-added, differentiated products as a means to improve earnings."
Overall, the third quarter is expected to be marginally positive as demand for consumer electronics goods, including smartphones and tablets, remains strong and a stream of new products hit the market. Supply for display panels is also expected to increase, as TV makers prepare for the year-end holiday season.
The IT & Mobile Communications division, comprising Mobile Communications, Telecommunication Systems, IT Solutions and Digital Imaging, registered quarterly operating profits of KRW4.19 trillion for the second quarter. Revenue reached KRW24.04 trillion, and the mobile unit accounted for KRW20.52 trillion, a 75-percent increase year-on-year.
The highly anticipated launch of Galaxy S3 and sales of Galaxy Note, along with a more competitive average selling price (ASP) than the previous quarter, have cushioned an on-quarter operating loss brought on by the seasonably weak earnings of businesses in IT Solutions and Telecommunication Systems.
Handset shipments gained quarter-on-quarter and year-on-year, driven mainly by global orders for premium smartphones.