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Samsung’s profits drop to $7.9 billion

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The bigger picture

Samsung Electronics yesterday announced the company’s quarterly revenues that the company has been able to make. According to the report, the company made 52.87 trillion Won, which is approx. $47.6 billion, in revenues in the quarter that ended in March. This is a six per cent drop from the previous quarter.

The consolidated profits have reached 8.78 trillion Won, which is approx. $7.9 billion. This shows a one per cent decline compared to the last quarter. The South Korean electronics giant estimates that the revenue figures would hit the $52 trillion Won ($46.8 billion) with an operating profit of 8.7 trillion Won, which is $7.8 billion in the last quarter.

Revenues by individual departments

Robert Yi, Senior Vice President and Head of Investor Relations says, “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.”

The Samsung Semiconductor department, which consists of the DRAM and SRAM memory types, recorded a consolidated 8.58 trillion Won, which is $7.7 billion. This is an 11 per cent loss compared to the previous quarter. And the Memory chip unit posted a consolidated 5.12 trillion won ($46.1 billion). This also shows a decrease of four per cent from the previous quarter.

The South Korean tech giant also has a consumer electronics division, which posted an operating profit of 230 billion won for the quarter on revenues of 11.24 trillion won ($10.1 billion). In this, the display manufacturing department brought in 7.43 trillion won ($6.7 billion) of earnings. This is because the company’s display units are used by many other manufacturers in the tech industry.

Finally, the IT and Mobile Communications department. You can say that this has become the backbone of the company as the smart phones from Samsung are selling like hot cakes all over the world. This department brought in 32.82 trillion Won, which is $29.5 billion. This is an increase of seven per cent from the previous quarter. Electronics writes, “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.”

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.

Source: Electronista