Samsung Electronics Co., Ltd the global leader in Electronics home Appliances and digital convergence technology has announced revenues of 37.89 trillion “Korean Won” (approximately 32.34 Billion dollars) on a consolidated basis for the second quarter ended June 30, 2010, a 17 percent increase year-on-year. For the quarter, the company posted net income of 4.28 trillion Won (3.65 Billion Dollars).Consolidated operating profit for the quarter was a record 5.01 trillion Won, (4.27 billion Dollars) an 88 percent increase year-on-year. The figure tops the previous high of 4.41 trillion Won (3.76 billion Dollars) in the first quarter of 2010.
In its earnings guidance disclosed on July 7, Samsung estimated second-quarter consolidated revenues would reach approximately 37 trillion Won (31.58 billion Dollars) with an operating profit of 5 trillion Won (4.26 Billion Dollars).
The company’s increased profitability in the second quarter was driven by significant improvements in its components businesses. The Semiconductor Business recorded an operating profit of 2.94 trillion Won (2.12 Billion Dollars) on sales of 9.53 trillion Won, (8.13 Billion Dollars) while the LCD Business generated an operating profit of 880 billion Won, (751 million Dollars) on a sale of 7.76 trillion Won (6.62 Billion Dollars).
Mobile Communications and Telecommunication Networks – posted an operating profit of 630 billion Won (537 million Dollars) on revenue of 8.78 trillion Won (7.49 Billion Dollars) and the operating profit margin was 7.2 percent, while Samsung’s digital media businesses – including Visual Display and Digital Appliances – registered sales of 14.54 trillion Won (12.41 Billion Dollars), a 20 percent increase YOY with an operating profit of 360 billion Won (307 million Dollars).
Samsung Electronics Pakistan General Manager Mr. Steve Han said, “In the second quarter, our component businesses performed very strongly, yet it was a more challenging quarter for our set businesses. With intensified competition throughout the digital media and mobile industries going forward, it may become a challenge to maintain current profitability levels. However, we will continue to focus on introducing differentiated products and widening our technology leadership in components to meet these difficult market conditions.”
Strong seasonal demand for core components will drive Samsung’s performance in the third quarter, although increased market supply is also forecast. Samsung forecasts that continued price competition in its set businesses will put downward pressure on profit margins in the third quarter.
Samsung also announced that total capital expenditures for the first half of 2010 reached 9.2 trillion Won (7.85 Billion dollars), representing 51 percent of the total of 18.2 trillion Won (15.53 billion Dollars) in CapEx planned for 2010.
