Samsung Electronics Announces Second Quarter Financial Results of 2017
Samsung Electronics today announced financial results for the second quarter ended June 30, 2017. Samsung’s revenue for the quarter was KRW 61.00 trillion, an increase of KRW 10.06 trillion YoY, while operating profit for the quarter posted a record KRW 14.07 trillion, an increase of KRW 5.92 trillion YoY.
In the second quarter, the components businesses drove significant earnings growth, both YoY and QoQ, thanks primarily to strong memory demand for high-density DRAMs and SSDs for servers.
System LSI contributed to earnings through increased sales of AP and CIS products while the Display Panel Business expanded sales of flexible OLED panels for premium smartphones and high-value LCDs under stable prices. Profits from the Mobile Business, driven by robust sales for the Galaxy S8 and S8+, also increased significantly QoQ.
The Memory Business posted significant earnings growth, both YoY and QoQ, amid tight supply-demand conditions while strong ASPs coupled with increased demand from the server market also contributed to profits. The System LSI Business increased sales of mobile processors and image sensors.
For the Display Panel business, OLED earnings improved QoQ with the help of increased shipments of flexible displays for premium smartphones. LCD panels enhanced profitability QoQ due mainly to increased sales of high-end, large-size UHD panels, amid stable ASP conditions.
The Mobile Business saw a significant increase in earnings QoQ with the global rollout of the Galaxy S8 and S8+. However the operating profit margin declined slightly YoY due to strong component prices.
Earnings for the TV business declined due to increased panel prices and slow demand from Europe and China. For the home appliances business, continued B2B investment led to a decline in earnings YoY.
Regarding Harman’s earnings in the quarter, it registered solid results from operations with USD 1.9 billion in sales and around USD 200 million in operating profit. However, with costs associated with the acquisition, net operating profit was approximately USD 5 million. Samsung expects such costs to continue to impact Harman’s results by an average of USD 100 million each quarter for the next few quarters.
Looking ahead to the third quarter, the company expects favorable semiconductor conditions to continue, although overall earnings may slightly decline QoQ as earnings weaken for the Display Panel and Mobile businesses.
For the Display Panel Business, an increase is expected in initial start-up costs for the new OLED production line, and intensifying price competition is forecast from LTPS LCD in the mid- to low-end rigid OLED segment.
For the Mobile Business, earnings are forecast to decline due to increased marketing costs related to the launch of a new Note device, with reduced profit contributions from the Galaxy S8 and S8+. Source: Samsung Newsroomhttp://gizbrain.com/2017/07/27/samsung-electronics-second-quarter-financial-results-2017/https://i1.wp.com/gizbrain.com/wp-content/uploads/2017/07/Samsung-Electronics.jpg?fit=719%2C286https://i1.wp.com/gizbrain.com/wp-content/uploads/2017/07/Samsung-Electronics.jpg?fit=210%2C84SAMSUNGTECH NEWSSamsungSamsung Electronics today announced financial results for the second quarter ended June 30, 2017. Samsung’s revenue for the quarter was KRW 61.00 trillion, an increase of KRW 10.06 trillion YoY, while operating profit for the quarter posted a record KRW 14.07 trillion, an increase of KRW 5.92 trillion YoY. In...Michael K.Michael K.email@example.comContributorMichael K. is a writer at GizBrain. Hi guys hope you have fun here as much as I do!GizBrain - Your Tech Brain