|Samsung Electronics Posts Another Record Quarter ...|
... on the strength of its semiconductor and mobile phone businesses. Sales of mobile phone handsets rose 19 percent from the same period last year to 71.4 million units (and were up 12% QoQ) based on the performance to the launch of the Galaxy S (7 million units) and Bada Wave smartphones (2 million). ASP was $122 (up 14% QoQ) Mobile Phone Sales were 10.38 trillion Won ($9 Billion) and Telecom Division Operating Margin was 10.2% (up 0.3% YoY) at 1.13 trillion Won ($1 billion).
Looking ahead, Samsung said it expects weak panel demand to continue into the fourth quarter of 2010 and prices for memory chips are also expected to fall rapidly on weak consumer demand for computers. Meanwhile, Samsung added that seasonal demand for TVs and mobile handsets would support robust sales growth.
Earnings Presentation Slides ...
>> Samsung Electronics Net Profit up 17%
Sarah Turner (Sydney, Australia)
Oct. 28, 2010, 10:11 p.m. EDT
Samsung Electronics Co. posted a 17% rise in third-quarter net profit on Friday, after sales improved at its semiconductor and telecom businesses.
The Korean firm’s net profit for the three months to Sept. 30 totaled 4.46 trillion Korean won ($4 billion), up from 3.81 trillion won recorded in the year-ago period.
The profit figure for the world’s largest chip maker came in toward the top of analysts forecasts.
Analysts surveyed by Dow Jones Newswires had expected a 4.3 trillion won while South Korea’s Yonhap news agency had expected a 4.5 trillion won profit.
Revenue advanced to 40.23 trillion won, up from 35.89 trillion won in the year-earlier quarter.
Sales at the firm’s semiconductor unit advanced 43% to 10.66 trillion won, while sales at its telecom unit rose 16% to 11.12 trillion won. Within the firm’s telecom unit, mobile revenue rose 15% to 10.38 trillion won.
Average selling prices rose 14% quarter-on-quarter to $122 and handset shipments rose 19% year-on-year to 71.4 million units, helped by higher sales for the firm’s smartphones, including its GalaxyS model.
Samsung /quotes/comstock/11i!ssnlf (SSNLF 660.00, 0.00, 0.00%) said that it expects smartphone demand to continue to grow.
Third-quarter sales at the firm's LCD division, which produces televisions, notebooks and monitors, were more subdued, up 4% to 8.1 trillion won. Samsung said that it expects smartphone demand to continue to grow.
Third-quarter sales at the firm's LCD division, which produces televisions, notebooks and monitors, were more subdued, up 4% to 8.1 trillion won. Samsung said that demand fell quarter-on-quarter due to slower economic growth and inventory issues and it expects weak panel demand to continue into the fourth quarter of 2010.
Shares of Samsung fell 1.8% in early Seoul trading. ###
>> Samsung's 3rd-quarter Net Profit Rises 17 Percent
The Associated Press
Seoul, South Korea
Thursday, October 28, 2010; 10:52 PM
Samsung Electronics Co. said net profit rose 17 percent in the third quarter to a record high amid strength in its semiconductor and mobile phone businesses.
Samsung, the world's largest manufacture of computer memory chips and flat screen TVs, earned 4.46 trillion won ($3.97 billion) in the three months ended Sept. 30, the company said Friday in a regulatory filing and statement. It had net profit of 3.81 trillion won the year before.
The result was Samsung's third straight record net profit performance. The company said in the statement that its semiconductor business recorded record sales of 10.66 trillion won during the quarter.
Sales of mobile phone handsets rose 19 percent from the same period last year to 71.4 million units, Samsung said. The company attributed the performance to the launch of the Galaxy S and Wave smartphones.
Samsung said overall third-quarter sales rose 12 percent to 40.23 trillion won, also a record and the first time the company has seen revenues surpass the 40 trillion won mark. The result compares with sales of 35.89 trillion won last year.
"In the third quarter, Samsung faced a challenging business environment including declining demand for PCs and TVs, along with a continued economic slowdown in developed markets such as the U.S. and Europe," Robert Yi, vice president and head of investor relations, said in a statement.
"Despite this, we achieved strong revenue growth and profitability, which was built upon our cost competitiveness in memory semiconductors and increased sales of cutting-edge products such as our latest smartphones," Yi added.
On the operating level - seen as a direct indicator of business performance before taxes, dividends, asset sales and other items figured into net profit or loss - Samsung reported a profit of 4.86 trillion won in the third quarter, or 15 percent higher than the year before.
Suwon, South Korea-based Samsung is a major force in the global electronics industry. Besides dominating in memory chips and TVs, the company is also the world's largest manufacturer of large-sized liquid crystal displays and ranks No. 2 in mobile phones behind Nokia Corp. of Finland.
Shares in Samsung, which released earnings about 25 minutes after the start of trading, fell 1.8 percent to 750,000 won approximately an hour later. The stock price surged 77 percent in 2009. ###
- Eric -