Reports quarterly working revenue of KRW 6.6 trillion
on gross sales of KRW 56.13 trillion
Memory chip market stays weak, demand seen recovering
amid exterior uncertainties
Investments in future applied sciences corresponding to AI,
automotive elements to proceed
Samsung Electronics in the present day reported monetary outcomes for the second quarter ended June 30, 2019. The Company posted KRW 56.13 trillion in consolidated quarterly income and KRW 6.6 trillion in quarterly working revenue.
The weak point and worth declines within the reminiscence chip market continued as results of stock changes by main datacenter prospects within the earlier quarters continued, regardless of a restricted restoration in demand.
The Display Panel Business reported enchancment as a consequence of a one-off achieve in cell shows and stronger gross sales of inflexible OLED panels, which offset losses from massive shows.
The Mobile Business posted stronger shipments on new mass market fashions however was total weighed down by slower gross sales of flagship fashions and elevated advertising and marketing bills. The Network Business posted strong outcomes on the commercialization of 5G service in South Korea.
The Consumer Electronics Division was boosted by sturdy gross sales of latest equipment merchandise and improved profitability of fridges and washing machines, though earnings from TVs fell barely YoY as a consequence of intensifying competitors.
Looking forward to the second half, Samsung expects persistent uncertainties within the reminiscence enterprise, though demand is seen rising additional on sturdy seasonality and adoption of higher-density merchandise. For system semiconductors, increased demand in cell APs, picture sensors and show driver ICs (DDIs) can also be anticipated to be seen.
For shows, new smartphone product launches are set to assist cell show earnings however total sluggish demand within the broad smartphone market might restrict upside potential.
As competitors within the smartphone market is seen rising within the second half, Samsung plans to boost its product lineup and broaden gross sales of latest mass market fashions. The Network Business will prioritize constructing the muse for its world 5G enterprise growth.
The Consumer Electronics Division expects a seasonal enhance in TV gross sales and can deal with premium fashions, whereas providing new home equipment corresponding to Bespoke fridges and AirDressers.
The Company is going through challenges from uncertainties not solely in enterprise areas but additionally from adjustments within the world macroeconomic surroundings. Samsung will, nevertheless, proceed to put money into enhancing enterprise capabilities and future applied sciences, together with 5G, system semiconductors, synthetic intelligence and automotive elements, for longer-term development.
In the second quarter, Samsung Electronics’ capital expenditure stood at KRW 6.2 trillion, together with KRW 5.2 trillion spent on semiconductors and KRW 0.5 trillion on shows. Total capital expenditure within the first half was KRW 10.7 trillion, together with KRW 8.Eight trillion for semiconductors and KRW 0.Eight trillion for shows.
The major portion of the Company’s 2019 capex is earmarked for constructing infrastructure to deal with demand past 2019, and a bigger proportion of this yr’s funding shall be made within the second half.
Semiconductor Sees 2H Demand Recovery Amid External Uncertainties
The Semiconductor Business posted consolidated income of KRW 16.09 trillion and working revenue of KRW 3.four trillion for the quarter.
Despite weak market situations, the Memory Business noticed demand for NAND and DRAM improve as cell and storage purposes continued to undertake higher-density merchandise and as datacenter prospects resumed buying. In the second half, demand is anticipated to develop though the Company sees volatility within the total business as a consequence of elevated exterior uncertainties.
For NAND, demand for high-density, excessive value-added datacenter and cell storage is prone to proceed to develop and the market is anticipated to…
