Samsung Electronics Announces Third Quarter 2017 Results

Online since 13.11.2017 • Filed under Industry news
Samsung Electronics Announces Third Quarter 2017 Results

Registers net profit of KRW11,19 trillion (R1,2 trillion) on sales of KRW62,05 trillion (R6,7 trillion) 3Q consolidated operating profit reaches KRW14, 53 trillion (R1,57 trillion)

Samsung Electronics announced financial results for the third quarter ended September 30, 2017. Revenue for the quarter was KRW62,05 trillion, an increase of KRW14.23 trillion year-on-year, while operating profit for the quarter posted a record KRW14,53 trillion, an increase of KRW9,33 trillion year-on-year.

In the third quarter, strong demand for high-performance memory chipsets for servers and flagship mobile devices was a contributing factor to robust performance. The Semiconductor Business registered significant earnings growth both year-on-year and quarter-on-quarter, and the System LSI added to the earnings rally through increased sales. The display panel segment posted an earnings decline, despite the expanded sales of flexible OLED panels for premium smartphones. The Mobile Business saw strong shipments thanks to the launch of Galaxy Note 8 and solid sales of the new Galaxy J series, but its earnings declined quarter-on-quarter due to the higher sales proportion of mass-market smartphones.

The OLED business saw an increase of flexible displays for customers’ new flagship smartphone launches drove an increase in sales. However, quarter-on-quarter earnings declined due to an increase in start-up costs of the new OLED production. For the LCD business, third quarter earnings declined due to an imbalance in supply and demand.

The Mobile Business saw smartphone shipments increase on the back of the global roll-out of the newly launched flagship, Galaxy Note 8 and solid performance of the new Galaxy J series. However, overall revenue and earnings decreased quarter-on-quarter due to the higher sales of mid- to low-tier models.

Samsung’s TV business saw significant improvements in quarter-on-quarter earnings, driven by increased sales of premium products including QLED TVs. However, due to the higher cost of LCD TV panels and weakening demand of the TV market, year-on-year earnings were modestly lower.

Moving on to business prospects for 2018, the company expects earnings to grow primarily from the component businesses, as conditions in the memory market are likely to remain favourable and the company expects increased sales of flexible OLED panels. For the Memory Business, demand for high-density, high-performance NAND will increase, as the need for larger data capacity in servers and mobile devices grows.

Looking ahead to 2018, major sports events, including the World Cup and Winter Olympics, are expected to drive demand for UHD and ultra-large screen TVs. Samsung will reinforce its market leadership in the premium market and further improve profitability by increasing the QLED and ultra-large TV lineups.

About Samsung Electronics Co., Ltd.

Samsung inspires the world and shapes the future with transformative ideas and technologies. The company is redefining the worlds of TVs, smartphones, wearable devices, tablets, digital appliances, network systems, and memory, system LSI, foundry and LED solutions. For the latest news, please visit the Samsung Newsroom at http://news.samsung.com.

For further information, please contact:

Anneke du Toit                                                              Jake Griffioen

PR Worx                                                                       Samsung Electronics South Africa

011 896 1818                                                                 011 549 1646

082 791 2202                                                                 071 671 2052

anneke@prworx.co.za                                                   jakes.g@samsung.com

 

 

 

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