SEOUL, Korea – July 30, 2010 – Samsung Electronics Co., Ltd. today announced revenues of 37.89 trillion Korean won 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.
Consolidated operating profit for the quarter was a record 5.01 trillion won, an 88 percent increase year-on-year. The figure tops the previous high of 4.41 trillion won 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 with an operating profit of 5 trillion won.
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 on sales of 9.53 trillion won, while the LCD Business generated an operating profit of 880 billion won on 7.76 trillion won in sales. Samsung’s set businesses – spanning digital media, IT solutions and telecommunications – also performed well despite increased price competition and uncertain global consumer sentiment.
“In the second quarter, our component businesses performed very strongly, yet it was a more challenging quarter for our set businesses,” said Robert Yi, Vice President and head of Samsung Electronics’ Investor Relations Team. "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, representing 51 percent of the total of 18.2 trillion won in capex planned for 2010.
About Samsung Electronics Co., Ltd.
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2009 consolidated sales of US$116.8 billion. Employing approximately 188,000 people in 185 offices across 65 countries, the company consists of eight independently operated business units: Visual Display, Mobile Communications, Telecommunication Systems, Digital Appliances, IT Solutions, Digital Imaging, Semiconductor and LCD. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones and TFT-LCDs. For more information, please visit http://www.samsung.com/.
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