Samsung Electronics Announces Earnings Guidance for 3Q 2019

  • The company had reported KRW 56.13 trillion in consolidated quarterly revenue during 2Q 2019
  • Samsung’s operating profit in 2Q 2019 was KRW 6.6 trillion

Samsung Electronics has reported consolidated sales of approximately 62 trillion Korean won for 3Q 2019. The company is expecting its operating profit to be around 7.7 trillion Korean won during the same quarter.

The company had last reported its financial results on 30 June 2019. These results were for the 2Q 2019. Samsung had said that its consumer electronics division was boosted by strong sales of new appliance products and improved profitability of refrigerators and washing machines.

Samsung’s profits from TVs had fell YoY, during Q2 2019. The company had cited intensifying competition as a reason behind felling profits from the TV vertical.

Samsung 2Q 2019 expenditure stood at KRW 5.2 trillion

Samsung Electronics’ capital expenditure, during the second quarter, stood at KRW 6.2 trillion. This figure included KRW 5.2 trillion spent on semiconductors and KRW 0.5 trillion on displays. Total capital expenditure in the first half, as per Samsung, was KRW 10.7 trillion, including KRW 8.8 trillion for semiconductors and KRW 0.8 trillion for displays.

Company’s official statement (2Q 2019) read, “The main portion of the company’s 2019 capex is earmarked for building infrastructure to address demand beyond 2019, and a larger percentage of this year’s investment will be made in the second half.”

It continued, “The display panel business reported KRW 7.62 trillion in consolidated revenue and KRW 0.75 trillion in operating profit for the quarter, returning to a profit from the previous three-month period thanks to a one-time gain and a gradual recovery in customer demand. Mobile display earnings increased, led by higher shipments of OLED panels featuring new technologies such as fingerprint-on-display and hole display.”

Company’s consumer electronics division, comprised of the Visual Display and Digital Appliances businesses, recorded KRW 11.07 trillion in consolidated revenue. KRW 0.71 trillion operating profit, was reported by Samsung, during the second quarter of 2019.