Samsung posts Q2 2017 financial result
Samsung posts Q2 2017 financial result
Samsung today published their Q2 2017 results that ended on June 30, 2017. Samsung recorded a revenue of 61 trillion won, a massive growth of 10.06 trillion won YoY with an operating profit of a record 14.07 trillion won, an increase of 5.92 trillion won YoY.
Just like the last few quarters, this quarter’s profit surge was a result of the flourishing components business, thanks to the strong memory demand of high-density DRAMs and SSDs for servers. Other businesses also saw a rise in income due to good market demand. The mobile business also saw a growth due to robust sales of the Galaxy S8 and Galaxy S8+.
Samsung’s recent acquisition, Harman also saw sales of 1.9 billion USD and operating profit of 200 million USD. However, profit was eaten up by the costs associated with the acquisition and Samsung expects the same for the next few quarters.
For the remainder of 2017, the company expects earnings to grow, again from the component business
Here’s a breakdown of individual businesses.
Semiconductors:
The semiconductors business that comprises of Memory and System LSI divisions posted consolidated revenue of 17.58 trillion won and an operating profit of 8.03 trillion won.
The memory division saw a strong quarter due to the growth in demand for memory chips in the high-performance high-density server products. The System LSI business earnings improved QoQ mainly due to increased sales of processors for flagship smartphones and steady sales of 14nm processors for mid- to low-end smartphones.
The Foundry business that was spun off from System LSI this quarter is looking to expand capacity and improve the efficiency of 10nm chip and is looking to complete development of 8nm process.
Display Panel:
The Display Panel division recorded a consolidated revenue of 7.71 trillion won and an operating profit of 1.71 trillion won due to strong sales of OLED panels and high-end LCD panels.
IT & Mobile Communications:
The IT & Mobile Communications comprising the Mobile Communications and Networks Businesses recorded an operating profit 4.06 trillion won on a consolidated revenue of 30.01 trillion won.
The IM division’s earnings increased QoQ due to sales of Galaxy S8 series with more than half from Galaxy S8+.
Samsung expects the next quarter will help the division due to strong seasonality demand but expects the revenue to decline QoQ due to marketing expenses for its Galaxy S8 phones and upcoming Galaxy Note.
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 posted consolidated revenue of 10.92 trillion won and a profit of 0.32 trillion won.
The TV market demand declined YoY due to less major sporting events compared to last year and slowdown in Chinese market. Moreover, Samsung maintained its lead in the premium market by increasing sales of UHD and ultra large-size TVs but profit declined YoY due to increased panel prices.
The DA business YoY profit decreased due to increased raw material costs and investments in the B2B market.
