Samsung posts slight profit drop to $7.9 billion, still beats street
Thursday, April 25, 2013 @ 8:59pm
| Samsung Electronics today announced quarterly revenues of 52.87 trillion won ($47.6 billion) for the first quarter ended March 31 -- a six percent decrease from the previous quarter. Consolidated operating profit for the quarter reached 8.78 trillion won ($7.9 billion), representing a one percent decline quarter-over-quarter. Samsung estimates revenues would hit 52 trillion won ($46.8 billion) with operating profit of 8.7 trillion won ($7.8 billion) in this last quarter.
Samsung reports that the IT and Mobile Communications Division brought in 32.82 trillion won ($29.5 billion), a seven percent increase from the previous quarter. The company called the last quarter "trying on the PC business," with the Networks Business department bolstering the bottom line with LTE and 4G chipsets.
"Although market uncertainties from the European crisis and the slow global economic recovery are still lingering, we expect to increase R&D spending for strengthening our competitiveness ahead of planned new product launches," said Robert Yi, Senior Vice President and Head of Investor Relations.
Samsung's Semiconductor businesses, which includes DRAM and NAND memory, posted a consolidated 8.58 trillion won ($7.7 billion) in revenue, an 11 percent drop from the previous quarter. The Memory chip unit logged 5.12 trillion won ($46.1 billion) in earnings with a revenue drop quarter-on-quarter of four percent.
The IT & Mobile Communications division which is made up of Mobile Communications, Networks and Digital Imaging businesses registered operating profits of 6.51 trillion won ($58.6 billion) on 32.82 trillion won ($29.5 billion) in revenue for the March quarter. The mobile business alone was accountable for 31.77 trillion won ($64.6 billion) in sales.
The Consumer Electronics Division of the company posted an operating profit of 230 billion won for the quarter on revenues of 11.24 trillion won ($10.1 billion). The Visual Display business alone accounted for 7.43 trillion won ($6.7 billion) of earnings, driven by sales of premium televisions. Future market conditions are expected to be offset somewhat by additional lines of Smart TVs and UHD televisions, such as models seen at the Consumer Electronics Show in January of 2013.