Reports quarterly working revenue of KRW 7.78 trillion on gross sales of KRW 62 trillion
Flagship smartphone and OLED led quarterly enchancment in 3Q earnings
Memory restoration anticipated in 2020, however macroeconomic uncertainty stays
Samsung Electronics as we speak reported monetary outcomes for the third quarter ended September 30, 2019. The Company posted KRW 62 trillion in consolidated quarterly income and KRW 7.78 trillion in quarterly working revenue.
Third quarter revenue fell sharply from a yr earlier however improved from the earlier quarter, as stronger smartphone gross sales and improved utilization in cellular OLED screens have been weighed down by continued weak point within the reminiscence chip market.
Both the U.S. greenback and euro strengthened towards the Korean received, leading to about KRW 0.four trillion in constructive results towards quarterly working revenue, primarily within the element enterprise.
Earnings from the Memory Business slumped considerably year-on-year as reminiscence chip costs continued its downward development amid the industry-wide weak point for the reason that finish of 2018. The logic chip enterprise noticed demand rise for picture sensors and show driver ICs (DDIs), but additionally suffered from value declines in cellular software processors (APs).
The Display Panel Business noticed revenue from cellular shows improve YoY with strong gross sales of OLED screens, improved capability utilization and lowered prices. However, losses continued within the massive panel enterprise attributable to ongoing capability expansions within the broader {industry}.
In the Mobile Business, sturdy gross sales of the Galaxy Note 10 and A sequence boosted revenue, together with improved margins for mass-market fashions. The enterprise additionally expanded its 5G product choices and launched the Galaxy Fold, demonstrating Samsung’s expertise management. Meanwhile, the Network Business reported larger earnings YoY on rising commercialization of 5G service in Korea.
The Consumer Electronics Division posted a YoY decline in revenue from the TV enterprise amid pricing stress from intensifying competitors, regardless of rising cargo of premium fashions comparable to QLED and ultra-large measurement TVs. Earnings from residence home equipment rose on elevated gross sales of premium merchandise.
Looking forward to the fourth quarter, the Company expects demand for parts to show sluggish normally amid weak seasonal results, whereas advertising and marketing bills are more likely to improve to handle year-end smartphone gross sales.
Memory chip demand is seen rising barely quarter-on-quarter on the again of stock constructing by prospects in response to international macroeconomic uncertainties. Mobile shows will doubtless report weaker ends in the fourth quarter, as demand falls in need of preliminary expectations for sure premium smartphones and prices improve attributable to decrease utilization in some manufacturing traces. Large panel costs are additionally more likely to proceed declining.
The Company expects fourth-quarter earnings within the Mobile Business to lower QoQ as advertising and marketing prices are set to rise and shipments to say no barely, with flagship mannequin gross sales weakening from their post-launch peaks. The Consumer Electronics Division will doubtless log stronger earnings helped by year-end seasonal demand.
For 2020, Samsung expects rising gross sales in 5G merchandise and foldable gadgets; the logic chip enterprise is forecast to report accelerated progress because it expands mass manufacturing of next-generation excessive ultraviolet lithography (EUV) primarily based merchandise.
However, uncertainties linger over the reminiscence chip market as demand is seen recovering however dangers from international {industry} circumstances persist. As Samsung plans to handle funding and capability operation flexibly relying on market circumstances, DRAM stock is anticipated to normalize within the first half of 2020. The Company additionally stays dedicated to investments to fulfill demand within the mid-to-long time period.
The System LSI Business will introduce differentiated 5G System-on-Chip merchandise and high-resolution…
