Samsung Posts Q3 2012 Results


Samsung today released its financial result for the third quarter that ended on September 30, 2012. Samsung posted consolidated revenue of 52.18 trillion won with operating profit reaching an all-time high of 8.12 trillion won. There’s a 91 percent increase in the operating profit year-on-year. As for the net profit, it reached 6.56 trillion won.

The mobile communications yet again, is the star of the results that accounts for more than 50 percent of the revenue followed by display panel business due to strong demand.

Furthermore, Samsung’s been heavily investing in its businesses and the capital expenditure for this quarter reached 4.5 trillion won, totaling to 18.5 trillion for the first three quarters with a plan to reach 25 trillion won by end of last quarter.

Here’s the individual breakdown of different divisions and guidance for the next quarter are as follows.

Samsung’s semiconductors business posted an operating profit of 1.15 trillion won on revenue of 8.72 trillion won, which is an 8 year decrease YoY. The drop is due to the weak demand of the DRAM chips along with its oversupply.

As for the Q4, Samsung expects DRAM for PCs to be weak but given the surge in mobile devices, Samsung expects a strong demand of application processors, image sensors and mobile DRAMs.

Display Panel:
This is one business that saw some profit, which is 1.09 trillion won of operating profit on 8.46 trillion won of revenue. That is a 19 percent YoY increase. The TV panel sales are steady but there’s a great demand for OLED and LCD panels for smartphones and tablets.

Samsung forecasts TV panel sales will remain strong due to upcoming Chinese New Year holidays and the demand for tablet and OLED panels for smartphones will surge further.

IT & Mobile Communications:
The IT & Mobile Communications division, comprising Mobile Communications, Telecommunication Systems, IT Solutions and Digital Imaging is the most profitable business for Samsung Electronics this quarter. The division recorded a revenue of 29.92 trillion won, an 82 percent growth YoY with operating profit reaching 5.63 trillion won, which is whopping 132 percent increase YoY.

Samsung’s division maintained profitability due to high sales of smartphones and expects the same in Q4 with devices like Galaxy S III and Galaxy Note II.

Visual Display and Digital Appliances:
Visual Display and Digital Appliances recorded a revenue of 11.60 trillion won and operating profit of 430 billion won, which is a 38 percent increase YoY. Despite a weak seasonal demand, Samsung managed to improve profitability by pushing sales of its LED TVs.

Samsung expects a decent quarter for TVs due to the upcoming holiday season and a sales growth in the digital appliance business with region-specific products.