Samsung Electronics today published its first quarter results that ended on March 31, 2011. Samsung posted revenues of 36.99 trillion Korean won on a consolidated basis, rising 7 percent on year-on-year (YoY) basis. As for the consolidated income and operating profit, Samsung posted a net income of 2.78 trillion won which is a 30 percent decrease YoY and 2.95 trillion won as the operating profit.
Samsung says telecom, semiconductor and digital media & appliance businesses brought in decent revenue but resulted in an overall net profit decline due to higher cost of raw materials, uncertainties in the European financial market, reduced profitability and the earthquake tragedy in Japan.
Individual business-wise, Samsung’s semiconductor business recorded an operating profit of 1.64 trillion, decrease of about 0.8 percent from last year. Revenue reached 9.18 trillion won, a 12-percent increase year-on-year including 5.87 trillion won from the memory division and 2.32 trillion won from LSI division.
Samsung expects the business to improve slightly with demand from NAND and System LSI products.
The Display Panel business suffered an operating loss of 230 billion won with revenues reaching 6.51 trillion won. Weak seasonality and low demand in China are few reasons for the declined LCD panel shipments but Samsung expects the demand for LCD panels will accelerate as television makers will set to gather inventory in preparation of a peak season ahead.
Telecommunications business saw a rise in the operating profit due to higher sales of smartphones and other high-end devices. Samsung sold 70 million handsets this year (18 percent were smartphones) and registered an operating profit of 1.43 trillion won on revenue of 10.64 trillion won.
In second quarter, Samsung plans to launch range of devices to cater at different price points and also focus on 4G infrastructure solutions.
The Digital Media & Appliances biz returns to profit from last quarter to post an operating profit of 0.10 trillion won and 13.52 trillion won on revenue.
The LED TV sales grew a whopping 420 percent YoY but expects the sales of flat panel TVs to slow down in advanced countries.
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