Samsung announces Q2 2010 results

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As expected, Samsung has announced its Q2 2010 results. The quarter ended on June 30, 2010 and Samsung has posted revenues of 37.89 trillion Korean won on a consolidated basis, which is a 17 percent increase YoY. Furthermore, Samsung recorded consolidated operating profit of 5.01 trillion won, a 88 percent increase YoY with net operating income standing at 4.28 trillion won.

Samsung also posted details of its individual businesses and the forecast for the upcoming quarter.

Semiconductor:

Samsung’s semiconductor business was one of the major earners for Samsung. The consolidated sales were recorded at 9.53 trillion won with an operating profit of 2.94 trillion won giving Samsung a profit margin of 30.8 percent. The semiconductors business rose 765 percent if we compare it with the last year’s Q2. Memory division accounted sales for 6.71 trillion won, mainly due to strong demand for DRAM.

As for Q3, Samsung predicts the demand for DRAM and NAND are expected to rise due to strong seasonality.

LCD Panels:

The LCD manufacturing business recorded revenue of 7.76 trillion won with an operating profit of 880 billion won. The operating profit rose to 11.3 percent from 4.2 percent the previous year and LCD panel sales increasing by 15-20 percent.

Samsung says there will be strong demand for panels in Q3 but will be balanced with adequate supply.

Telecommunications:

Samsung’s telecommunication business posted an operating profit of 630 billion won on revenue of 8.78 trillion won. Samsung managed to sell 63.8 million handsets this quarter but led to fall in average selling price due to competition. Touchscreen phones accounted for 30 percent of the total handset sales.

Samsung expects to expand its market share in Q3 with Galaxy S and Wave and sell about 10m units of both the models.

TV and Digital Appliances:

Samsung’s TV and appliances business posted sales of 14.54 trillion won with operating profit of 360 billion won.

Samsung shipped 9.02 million flat panel TVs, recording a 43 percent rise YoY in developing markets whereas developed markets choosing for LED and 3D TVs. Digital appliances sales increased by 23 percent YoY.

Samsung reckons demand for flat panel TVs will increase in Q3.