Samsung has announced its second quarter 2011 results and its pretty close to what they had released in the earnings guidance. Samsung’s consolidated sales for the second quarter was at 39.44 trillion won with an operating profit of 3.75 trillion won, 25 percent lower year-on-year. Samsung’s net profit was also down by 18 percent year-on-year wise, recording 3.51 trillion won.
Business-wise — just as we expected — Telecommunications division was the most profitable recording a 43 percent year-on-year sales. Samsung’s capex for the second quarter was 5.6 trillion won, making the total investment in the first six months of 2011 to 11.2 trillion won. Samsung is still committed to invest 23 trillion won but will invest more in semiconductor and reduce in the LCD business.
Semiconductors:
The semiconductor biz posted a consolidated profit of 1.79 trillion won, which was higher than the previous quarter but a decline year-on-year. Revenue stood at 9.16 trillion won, 4 percent decrease year-on-year.
In Q3 2011, Samsung expects see a surge in the demand of DRAM and tight supply of NAND flash due to high demand of tablets and smartphones.
Display:
The Display Panel business posted an operating loss of 210 billion won on revenue of 7.09 trillion won. Samsung expects a 6 percent rise in shipments quarter-on-quarter in the upcoming quarter.
Telecommunications:
As mentioned earlier, Telecommunications division was the most profitable for quarter that recorded an operating profit of 1.67 trillion won on revenue of 12.18 trillion won. The positive result was due to the rise in sales of smartphones, including Galaxy S II. Samsung failed to confirm any sales figure but it is estimated that 19 million smartphones were sold. Sale of smartphones has also led to increase in the average selling price of handset, which is up by 10 percent.
Q3 also looks promising for the mobile division due to the rising demand of smartphones and tablets. Samsung will also continue to invest in LTE.
Digital Media and Appliances:
The Digital Media & Appliances businesses that includes Visual Display, IT Solutions and Digital Appliances posted revenue of 14.07 trillion won with operating profit of 510 billion won. Samsung’s LED TVs sales have been picking up and accounted for sales of almost half of Samsung LCD TVs.
Digital Appliances’ revenue was also on the upside thanks to sales of air conditioners and refrigerators in Korea and other emerging markets.
Dude, do you have any idea what a trillion is?? What currency are you using in the article?? I’m guessing NOT $, because they had about 200 billions $ revenue in 2010. And now, almost 40.000 billions??????