Samsung Electronics Co., Ltd. today declared earnings of 45.27 trillion Korean won on a combined basis for the first one fourth ended Apr 31, 2012, a 22-percent increase year-on-year.
For the one fourth, the organization's combined managing income achieved an all-time great of 5.85 trillion won comprising a 98-percent increase year-on-year. Consolidated net income for the January-March interval was 5.05 trillion won.
Despite a loss of income of semiconductor snacks and TVs due to periodic aspects, a rise in income in screen sections and cell mobile phones encouraged up monthly managing income by 1.7 percentage points to 12.9 %.
In its income guidance disclosed on Apr 6, New samsung estimated first-quarter combined earnings would reach roughly 45 trillion won with combined managing income of roughly 5.8 trillion won.
Samsung's powerful performance in the one fourth was driven mainly by the IT & Cellular Electronics (IM) section, which is comprised of four companies, Cellular Electronics, Telecom Techniques, IT Alternatives and Electronic Quality. In particular, strong development in the Cellular Electronics company, with brisk income of leading GALAXY Note and GALAXY S II devices contributed to the organization's income.
The combined managing income for IT & Cellular Electronics companies achieved 4.27 trillion won on income of 23.22 trillion won. The Display Section company rebounded in the first one fourth with managing profits of 280 million won, following an uptick in need for high-margin sections used in tablets, 3D/ LED TVs and top quality OLED sections.
"Despite difficult company environments such as periodic low need for significant items such as PCs and TVs in the midst of a international financial slowdown, we achieved record monthly results according to our differentiated items and technological innovation authority. We very carefully anticipate our income strength to proceed going ahead, as competitiveness in our significant companies is enhanced," said Robert Yi, Senior Vice President and Head of Investor Relations.
Looking into the second one fourth, New samsung expects to increase income in the processor company with a recovery in PC DRAM cost and by growing its new item category with mobile application processors according to 32 nanometer-class procedure technological innovation. New samsung programs to also bolster its edge against your competitors in cell mobile phones with the debut of new high-end mobile mobile phones, and by reinforcing the full lineup of items and its existence in growing marketplaces.
Capex 7.8 Trillion Won in Q1
Capital expenditure in the first one fourth was 7.8 trillion won, with 5.8 trillion won spent in the Semiconductor Business and 1.3 trillion won in the Display Section section.
Earlier this season, New samsung declared programs to spend a total of 25 trillion won in capex for 2012.
Fifteen trillion won will be spent in the Semiconductor Business that consists of Storage and Program LSI. For the Display Section section, 6.6 trillion won has been allocated for investment.
Organizational Change
Starting from the first one fourth, the company section financial disclosure will reflect the business changes, which took place in Dec, 2011. We will provide income and income of Program Alternatives, such as Semiconductor and Display Section businesses; and Electronic Media & Electronics, such as IT & Cellular Electronics and Customer Electronics (CE) departments.
IT & Cellular Electronics contains Cellular Electronics, Telecom Techniques, IT Alternatives and Electronic Imaging; and CE contains Visible Display and Electronic Equipment.
Seasonal Factors Dampen Chip Demand
Samsung's Semiconductor Business – such as Storage and Program LSI – posted an managing income of 760 billion won in the first one fourth. Revenue retreated to 7.98 trillion won on-year, a 13-percent reduce compared with the same interval last season.
Weaker-than-expected off-peak season need and a international provide crunch of HDDs coupled with low need for PC DRAM snacks and the oversupply of mobile DRAM impacted income, in which the memory section saw its income slip to 4.89 trillion won. For NAND, spot cost remained poor due to sluggish need compounded by early on items from geometry migration flowing into the channel industry.
Despite adverse industry conditions, Samsung's processor company was buoyed by powerful need for hosting server DRAM and by growing our value-added item mix such as items depending on the 30-nanometer-class and 20-nanometer-class procedure technologies.Increased orders for Solid State Drives (SSDs) and Embedded Multimedia Cards (eMMC) also assisted the processor company to support the industry squeeze.
Looking ahead, the international HDD provide lack is predicted to be alleviated in the second one fourth and need for specialty DRAM items such as mobile and hosting server DRAMs will be powerful. However, elevated competition among manufacturers of 30-nanometer-class snacks will lead to a cost decline.
In the second one fourth, New samsung is poised to ramp up provide of high-capacity, power-efficient DRAM for servers according to our green memory solution. As for NAND, we will spur development by growing the 20-nanometer-class section. Sales of CMOS image receptors will stay great in the April-June one fourth, as need for mobile mobile phones equipped with high-resolution cameras is predicted to be powerful.
Display Business Swings to Profit
Operating income for the Display Section Business turned around from the previous one fourth to register 280 million won on income of 8.54 trillion won in the first one fourth.
Despite traditionally poor seasonality, continued financial stagnation in Europe, and the prolonged provide lack in the PC industry, the Display Section Business was able to increase income by growing income of high-end top quality sections such as LED TV and 3D sections, which encouraged TV panel income up in the mid-20 % variety on-year. Improved income of high-resolution sections for product PCs and OLED sections for mobile mobile phones also assisted increase income in the one fourth.
Looking ahead, although the industry for monitor sections will stay stagnant, need for product and notebook sections is predicted to increase on periodic education-related need while TV sections are required to raise due to Chinese Labor Day income and the London, uk Olympics.
Moving ahead with the establishment of New samsung Display Corporation, the company will keep enhance income by growing income of top quality panel items such 3D, large size and LED sections, while smartphone need is predicted to keep fuel OLED panel income.
Profits Propped Up by Strong Sales of Sensible Devices
The IT & Cellular Electronics division – such as Cellular Electronics, Telecom Techniques, IT Alternatives and Electronic Quality – authorized monthly managing income of 4.27 trillion won for the first interval. Revenue achieved 23.22 trillion won, and the mobile unit accounted for 18.90 trillion won, up 86 % year-on-year.
Growth in deliveries of Samsung's leading GALAXY Note and GALAXY S II and other top quality mobile mobile phones yielded preferred tax treatment, with significant development in China, Central and South America, the Middle East and Africa.
Samsung is predicted to proceed its powerful development strength in the second one fourth, following the announcement of the next GALAXY device in London, uk on May 3.
The Telecom Techniques company saw development both in income and managing profits due to a rise in LTE (Long Term Evolution) wireless broadband technological innovation equipment. In the case of IT Alternatives, a increase in income of mid-to-high-end items, such as PCs and printers enhanced quarter-on-quarter income.
We anticipate to further solidify our leading position in LTE company in the US industry and make further inroads into countries newly adopting the service.
Premium TV Sales Lift Profitability
Samsung's Customer Electronics companies, which encompass Visible Display and Electronic Equipment, authorized an managing income of 530 million won in the one fourth, up 550 % year-on-year, on earnings of 10.67 trillion won.
Although poor seasonality led to a quarter-on-quarter dip in income, powerful income of top quality TVs in designed marketplaces and LED TVs in growing marketplaces saw deliveries outstrip industry development and drive a sharp increase in income. Highlights for the one fourth included a rise in income of more than 50 % for Samsung's leading 7000/8000 TV series on-year, while the Electronic Equipment Business enhanced income, both on-year and on-quarter, by increasing its part of top quality income.
In the second one fourth, industry development for lcd TVs in the mid-single digits is predicted on rising need in growing marketplaces and increased income of LED TVs which are forecast to account for over 60 % of the TV industry in the one fourth. In growing marketplaces, New samsung aims to expand its existence with region-specific LED TV designs, while its variety of Sensible TV designs with enhanced features will keep maintain the organization's authority in designed marketplaces.
As for digital appliances, need is predicted to rise led by development in growing marketplaces. New samsung will aim to increase income in the one fourth by enhancing R&D efficiencies, growing income of top quality items and income in growing marketplaces, and capitalizing on powerful periodic need for air conditioners.
Source: New samsung Electronics