Samsung today posted the financial result of second quarter of 2013 that ended on June 30, 2013. The consolidated revenue for the quarter reached 57.46 trillion, which is a 9 percent increase over the last quarter with the operating profit reaching 9.53 trillion won and the net profit at 7.77 trillion won.
Also, when comparing with the first half of the previous year, the first half of 2013’s revenue was up by 19 percent, operating profit was up by 51 percent and profit ratio improved by 3.5 percent to 16.6 percent from 13.1 percent from H1 2012.
Samsung also highlighted that depending on the market conditions, the capital expenditure (capex) for the year will increase by 1 trillion won in 2013 to 24 trillion won with semiconductors business to invest about 13 trillion won and Display Panel business will invest 6.5 trillion won. H1 2013 has already seen a capex injection of 9 trillion won or 38 percent.
Samsung also posted figures of individual businesses which are as follows:
Semiconductors:
Samsung posted consolidated revenue of 8.68 trillion won with mobile DRAM and NAND flash memory showing strong growth due to demand for mobile devices and SSD products.
Heading into the next quarter, Samsung expects improved PC DRAM demand due to seasonality and will ramp up production of 28nm AP and imaging sensors.
Display Panel:
The display panel business posted a revenue of 8.18 trillion won with operating profit reaching 1.12 trillion won – a 46 percent profit from last quarter. The sales for this quarter was improved due to the increased demand of TV in China and continued demand for tablet displays.
Samsung expects Q3 2013 to improve a bit on account of higher seasonal demand for TV panels.
IT & Mobile Communications:
The IT & Mobile Communications division, comprising Mobile Communications, Telecommunication Systems, IT Solutions and Digital Imaging recorded revenue of 35.54 trillion won, out of which 34.58 trillion won came from the mobile phone business. The operating profit reached 6.28 trillion won.
Although the numbers are better by 9 percent from last quarter, Samsung says the profitability of the division was severely hampered by R&D investment and expansion of distribution channels and slow PC sales.
For Q3, Samsung expects smartphone sales to pick up and grow to account for over 70 percent of the company’s mobile phone shipments. In the case of tablet PCs, Samsung expects to grow in the mid-10 percent range with the introduction of new tablets.
Consumer Electronics:
The Consumer Electronics Division that includes the Visual Display and Digital Appliances businesses posted an operating profit of 430 billion won on revenues of 12.78 trillion won. Sales of premium TV models and demand for air conditioners helped improve the division’s sales performance by 14 percent from last quarter.
For Q3, Samsung plans to expand sales of UHD TV, OLED TV and larger sized television sets while Samsung expects low growth for digital appliances.
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