Samsung Electronics Co., Ltd. announced its financial results for the third quarter of 2006, ended Sept. 30, 2006. The company posted net income of 2.19 trillion won (approx. U.S. $2.3 billion) on revenue of 15.22 trillion won (approx. $15.9 billion). Operating income for the third quarter was 1.85 trillion won (approx. $1.9 billion).
Operating profit of the Semiconductor Business reached 1.27 trillion won (approx. $1.3 billion) on revenue of 4.91 trillion won (approx. $5.2 billion) in the third quarter. Operating profit increased 29.5 percent in the third quarter from the second quarter, mainly due to strong demand of memory chips from the PC sector.
The Telecommunication Network Business posted revenue of 4.71 trillion won (approx. $4.9 billion), and operating income of 520 billion won (approx. $545.9 million). In the third quarter, robust sales of the "Ultra Edition" premium handsets in Europe helped boost sales to a record 30.7 million units and double-digit profit margins of 11.1 percent.
The LCD Business reported revenue and operating income of 2.9 trillion won (approx. $3.0 billion) and 160 billion won (approx. $167.9 million), respectively. Prices of IT panels recovered ahead of the seasonally-robust period and sales of 40-inch and larger TV panels remained strong.
Demand for LCD TV panels dominated the industry dynamics. Samsung Electronics sold 3 million units of LCD TV panels, of which sales of 40-inch and larger TV panels amounted to 1.6 million units. Samsung Electronics continues to asset its leadership in the LCD TV panel market, which grew 37 percent from the second quarter. Samsung Electronics plans to boost monthly production capacity of its Line 7 to an additional 150,000 units in the fourth-quarter, a busy selling season.
Digital Media Business posted an operating loss of 100 billion won (approx. $104.9 million) on revenue of 1.64 trillion won (approx. $1.7 billion), on a parent basis. However, sales of LCD TV, PDP TV and other high-end flat-panel TV fared well, generating formidable profit for the company.
Equity gains, which better depict the global performance of the Digital Media Business, jumped to 540 billion won (approx. $566.9 million) in the third quarter from 290 billion won (approx. $304.5 million) in the second quarter. The majority of the equity gains were generated from strong sales of digital media products including LCD TVs.
Sales of its Digital Appliance Business increased 7.6 percent quarter-on-quarter to 830 billion won (approx. $871.6 million) from favorable sales of refrigerators and washing machines. Operating loss was at 14.8 billion won (approx. $15.5 million).
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