Samsung today announced the financial result of quarter ending June 30 2012. Samsung’s earnings guidance earlier this month was spot on as the posted consolidated revenue is 47.60 trillion won with operating profit of 6.7 trillion, representing a 21 percent rise and 79 percent year-on-year (YoY) respectively. Samsung’s consolidated net profit for Q2 reached 5.19 trillion won.
Samsung says they managed to maintain its profit streak due to a major contribution from the mobile communications business.
The individual breakdown of different divisions and guidance for the next quarter are as follows.
Samsung semiconductors business posted an operating profit of 1.11 trillion won on revenue of 8.6 trillion won, 6 percent decline in sales YoY.
Samsung says demand for PC DRAM chips remained weak but demand for NAND products and mobile APs improved from last quarter.
For Q3, Samsung expects lesser demand of PC DRAM than this quarter and NAND demand to improve due to national holidays in China and US.
The Display Panel business recorded revenue of 8.25 trillion and an operating profit of 750 billion won, 16 percent increase in sales YoY. Samsung’s TV panel shipments increased by 10 percent YoY due to the demand of 3D TVs and LED TVs whereas demand for panels for notebook PCs and monitors was offset by tablet PC panels.
In Q3, Samsung expects TV panels sales to rise further due to the upcoming holiday season in China but has a disappointed outlook for the notebook PC and monitor panels.
IT & Mobile Communications:
The star of this quarter’s financial result. The business that consists of mobile communications, telecommunication systems, IT solutions and digital imaging posted an operating profit of 4.19 trillion won with revenue reaching 24.04 trillion won, including handset sales of 20.52 trillion won, representing 75 percent growth YoY.
While Samsung didn’t divulge the shipment numbers, handset shipment gained from last quarter, thanks to the sales of Galaxy S III and Galaxy Note.
Samsung has a bullish outlook for the upcoming quarter as well due to its Galaxy S III flagship device.
Visual Display and Digital Appliances:
Visual Display and Digital Appliances businesses recorded revenue of 12.15 trillion won for the second quarter, a 7-percent increase year-on-year while the operating profit reached 760 billion won, representing an increase of 66 percent compared with the same period last year.
Despite the flat demand for TVs, Samsung managed to improve shipment as well as profitability. Samsung’s LED TV sales have also jumped from mid-60 percent to mid-80 percent.
Going into Q3, Samsung expects TV demand to remain the same in developed markets, region-specific and entry-level LED TVs are expected to rise further.