Samsung Electronics has published financial result of Q3 2011 that ended on September 30, 2011. On a consolidated basis, Samsung posted revenues of 41.27 trillion won and net income of 3.44 trillion won, a 3 percent increase Year-on-Year (YoY) and 23 percent decrease YoY. Consolidated operating profit stood at 4.25 trillion won for the quarter.
As expected, Telecommunications business was the best performing division. Samsung’s Capital Expenditure stood at 4.9 trillion won, taking the year-to-date total investments to around 16 trillion won.
The Semiconductors business also saw a slight increase in sales, recorded at 9.48 trillion won as compared to 9.16 trillion won in the previous quarter. Sales increase was a result of the increased demand for NAND flash chips and mobile application processors. However, the consolidated profit took a hit at 1.59 trillion won.
As for the Q4 prediction, Samsung expects PC memory demand to weaken but DRAM demand for mobile devices and servers to stay high.
Display Panel Business:
The Display Panel Business recorded an operating loss of 90 billion won on revenue of 7.08 trillion won, a decline in sales of 13 percent compared with the same period last year.
Moving forward, Samsung expects panel sales growth to be limited in the next quarter. Year-end holidays and OLED panel demand will help lift the revenues of the business.
Telecommunications Business is one of the most profitable division for Samsung. The business recorded an operating of 2.52 trillion won and revenue of 14.90 trillion won, which 37 percent more from the previous year. Handset shipments were 20 percent higher quarter-on-quarter.
Samsung expects smartphone demand to be higher in Q4 which will be assisted with the launch of Galaxy Nexus and Galaxy Note. Expansion of LTE business in North America and Asia will also contribute to the business.
Digital Media & Appliances Business:
Digital Media & Appliances Business which includes Visual Display, IT Solutions, Digital Imaging and Digital Appliances posted revenues of 14.36 trillion won for the third quarter.
TV demand is expected to rise in the fourth quarter due to seasonal demand but other products may face some problems due to challenging global economy.