Samsung published its financial results for the third quarter that ended on September 30, 2015 (Q3). Samsung reported revenues of 51.68 trillion won, an increase of 6 percent quarter-on-quarter (QoQ) and an operating profit of 7.39 trillion won, a 500 billion won increase. Samsung attributes the improved result due to favourable exchange rate and sales driven mainly by the semiconductors and the display panel business.
Samsung expects the next quarter to decline in profit compared to this quarter.
As for the individual businesses, this is how they fared.
Semiconductors:
The semiconductors business recorded a revenue of 12.82 trillion won with an operating profit of 3.66 trillion won.
Despite less than expected growth of IT products, Samsung saw an increase in market demand for memory products. The System LSI business on the other hand saw some solid demand for its 14nm SoCs and CMOS image sensors.
In Q4, Samsung expects to see a steady demand for products despite slower seasonality demand.
Display Panel:
The Display Panel division posted a revenue of 7.49 trillion won and an operating profit of 930 billion won. The LCD panels got some good revenues for the division despite the slowdown in demand and decline in average sales price whereas the OLED panel earnings showed a positive growth due to launch of new devices using the OLED panels.
Samsung expects to improve cost competitiveness and expand its customer base.
IT & Mobile Communications:
The IT & Mobile Communications division registered a consolidated revenue of 26.61 trillion won and 2.40 trillion won in consolidated operating profit.
Samsung says the increased shipments of Galaxy Note5, Galaxy S6 Edge+ and the Galaxy A and J series helped the division improve their earnings but profits decreased slightly due to increase in shipments of its mid-range devices and price reduction of Galaxy S6 and Galaxy S6 edge.
As for the next quarter, Samsung reckons the competition in the segment will heat up but expects the sales to increase due to higher market demand.
Samsung will also focus on expanding Samsung Pay and wearable devices range.
Consumer Electronics:
The CE division consists of Visual Display (VD), Digital Appliances (DA), Printing Solutions and Health and Medical Equipment (HME) businesses and cumulatively, the division recorded 11.59 trillion won in consolidated revenue and a profit of 360 billion won.
The VD earnings improved QoQ, thanks to sales of premium UHD TVs with DA business also showing some growth due to sales of premium products.
Samsung feels the next quarter will be better considering its the holiday season quarter.
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