Samsung Electronics Co., Ltd. (Seoul) said its Consumer Electronics division, which includes its appliance business, had a third quarter increase from the previous year but down from the second quarter.
Samsung overall reported record operating profit of 8.12 trillion won (approx. US$7.4 billion) in the third quarter of 2012 - up 91% year-on-year. Net profit for the quarter was 6.56 trillion won (approx. $6.0 billion)
Consolidated revenues were 52.18 trillion won (approx. $47.8 billion), up 26% year-on-year.
Samsung's strong quarter was attributed to increased sales of handheld phones and better demand for display panels. The Mobile Communications Business posted 26.25 trillion won in revenue for the quarter, accounting for more than half of Samsung's total revenue. As for the display panel segment, increased shipments of Organic Light-Emitting Diode (OLED) and Liquid Crystal Display panels used in tablets and smartphones, as well as TVs drove up profitability.
Looking ahead, for the remaining quarter, sales of digital appliances will slow down due to unfavorable market conditions in developed economies.
The Consumer Electronics division, which includes Visual Display and Digital Appliances businesses, had revenue of 11.60 trillion won (approx $10.6 billion) in 3Q 2012. Operating profit was 430 billion won, up 38% from 3Q 2011 but down on the previous quarter.
The earnings decline in the Digital Appliances Business was a result of sluggish demand in developed markets and weak seasonal demand for air-conditioners.
Samsung is targeting future sales growth in emerging markets with region-specific products and improved profitability in developed markets by selling high value-added products.
Samsung expects peak season demand for TV products in the fourth quarter, which is expected to stimulate quarterly growth in the mid-20% range.
to Daily News