Samsung Electronics Has Its Best Quarterly Performance and World’s Best Performance in Second Quarter

Samsung Electronics had its best quarterly performance and world’s best performance in this past second quarter. It made amazing performance from its semiconductor business by making $7.21 billion (8.03 trillion KRW) in operating profit and having 45.7% of operating profit ratio.

Its second quarter’s operating profit of $12.6 billion (14.07 trillion KRW) is likely to be the highest operating profit out of all businesses in the world. As electronic industries are having booming seasons globally, major companies such as SK Hynix and LG Display led by Samsung Electronics all had great performance. It is expected this kind of upward trend will continue until second half of this year.

Samsung Electronics announced on the 27th that it made $54.7 billion (61 trillion KRW) and $12.6 billion (14.07 trillion KRW) in sales and operating profits respectively in this past second quarter based on all of its subsidiaries.

Its second quarter’s sales of $54.7 billion (61 trillion KRW) is 20% more than its sales from last year’s second quarter and this increase took place due to continuous booming of memory markets and increase in global sales of Galaxy S8 and S8 Plus. It made $7.18 billion (8 trillion KRW) in just operating profit alone from its semiconductor business and it also made more than $3.59 billion (4 trillion KRW) from its Smartphone business and all these operating profits led to Samsung Electronics making $12.6 billion (14.07 trillion KRW) in total operating profits which is $5.31 billion (5.92 trillion KRW) more than operating profit from second quarter of last year. Its second quarter’s operating profit ratio is 23.1%.

Looking at Samsung Electronics’ business department, Samsung Electronics made $15.8 billion (17.58 trillion KRW) and $7.21 billion (8.03 trillion KRW) in sales and operating profit respectively from its semiconductor business out of DS (Device Solution) branch. It made $6.92 billion (7.71 trillion KRW) and $1.53 billion (1.71 trillion KRW) in sales and operating profits respectively from its display business and it made $26.9 billion (30.01 trillion KRW) and $3.64 billion (4.06 trillion KRW) in sales and operating profits respectively from IM (IT and Mobile) branch. It made $9.80 billion (10.92 trillion KRW) an $287 million (320 billion KRW) in sales and operating profits respectively from CE (Consumer Electronics) branch.

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It is calculated that Samsung Electronics invested total of $11.4 billion (12.7 trillion KRW) into facilities during second quarter. Out of these investments, $6.73 billion (7.50 trillion KRW) and $4.04 billion (4.50 trillion KRW) were invested into semiconductors and displays respectively. It invested $20.2 billion (22.5 trillion KRW) into facilities during first half of this year alone and this amount is close to last year’s entire facility investment of $22.9 billion (25.5 trillion KRW). Although it has not decided on this year’s plan regarding facility investments, it is likely that it will invest much more into facilities compared to last year with semiconductor and display businesses at the center.

For semiconductor memories, Samsung Electronics is planning to carry out investments that will increase output of its Pyeongtaek Industrial Complex and convert flat NAND into V NAND so that it can respond to increase in number of demands of V NANDs. System LSI is going to carry out investments that will convert some of 11 line, which is a line in Hwasung that produces DRAMs, into a image sensor production line. Samsung Electronics’ foundry business is continuing to extend new 10-nano lines. Samsung Electronics’ display business is going to carry out investments that will increase output in order to respond to increase in number of demands of flexible OLEDs.

It seems that upward trend of Samsung Electronics’ performance will continue into second half of this year.

“We expect our performance to grow during second half of this year with our components business at the center.” said Samsung Electronics through a conference call. “It is predicted that performance from our display and wireless businesses will fall slightly during third quarter of this year as businesses will start to slow during third quarter.”

Global booming of electronic industries have also increased performance of South Korea’s major electronic businesses besides Samsung Electronics. LG Electronics, which announced its performance on this day, recorded $13.1 billion (14.5514 trillion KRW) and $596 million (664.1 billion) in sales and operating profit respectively in this past second quarter based on all of its subsidiaries. Compared to second quarter of last year, its sales and operating profit increased by 3.9% and 13.6% respectively. SK Hynix, which announced its performance before Samsung Electronics and LG Electronics, made its biggest performance in this past second quarter by making $6.00 billion (6.6923 trillion KRW) and $2.74 billion (3.0507 trillion KRW) in sales and operating profit respectively. Its operating profit ratio was also whopping 45.6%. LG Display’s performance in this past second quarter was also a lot better than second quarter’s performance from last year as it made $5.95 billion (6.6288 trillion KRW) and $722 million (804.2 billion KRW) in sales and operating profit respectively.