Samsung Reports $3.8 Billion 3rd Quarter Profits

Samsung Electronics Co., Ltd., has announced global revenues of 35.87 trillion Korean Won (Approximately 29 Billion U.S. Dollars) on a consolidated basis for the third quarter ended September 30, 2009, an 18.5 percent increase year-on-year(YOY). Consolidated operating profit for the 3rd quarter was 4.23 trillion Korean Won, a 185.8 percent increase year-on-year. Income before income taxes reached 4.62 trillion Korean Won, approximately 3.8 billion U.S. Dollars on a consolidated basis.

Amid improving global consumer sentiment, Samsung recorded strong results across both major business units, namely the Device Solutions (Memory Chips, LCD Panels, etc.) and Digital Media/Communications (mobile phones, flat panel TVs, etc), which had supported a sustained profit recovery and enhanced market shares during the said period.

Mr. Robert Yi, Vice President and Head of Samsung Electronics Investor Relations Team Said; “Samsung achieved an outstanding operating profit in the third quarter, with our components and product set businesses performing strongly in tandem. We forecast a solid fourth quarter supported by seasonal demand for consumer electronics. Despite many challenges including increased marketing expenses, we have made great progress in strengthening our market leadership throughout 2009. Thus, we are optimistic about further growth as the global economic recovery continues into 2010”.

Capital expenditure on a parent company basis for the third quarter was 1.34 trillion Korean Won, while Samsung expects capital expenditure for 2009 to reach 7 trillion Won. Samsung expects to increase capital expenditure further in 2010, as a response to rising demand for electronics. Samsung forecasts say that a weak U.S. dollar will not significantly impact its financial performance as its product set business is more influenced by the Euro and Yen. Thus Samsung will be able to maintain its price competitiveness alongside European and Japanese set manufacturers.

The improved operating profits for the major divisions of Samsung are as under: Semiconductors 1.15 trillion Won, LCD 1.01 trillion Won, Telecommunications 1.03 trillion Won and Digital Media 940 billion Won. Samsung’s technological advantage and cost competitiveness helped achieve higher sales & higher profits in various products including; Sale of 148 million large-sized LCD panels along with Premium LED, 240 Hz TV panels and other eco-friendly products, 1.2 million units of new line of LED TVs. Continued growth of Samsung mobile WiMAX business, Increased market-share for refrigerators and Drum washing machines. A sale of 60.2 million mobile sets with improved sales volume of feature-rich touch screen mobile handsets & devices. Thus, Samsung is on track to beat its full year 2009 target of 200 million mobile handset sales.