Samsung Reports Record Profits in Third Quarter
Nov 3, 2010
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Samsung Electronics reported revenues of 40.23 trillion Korean won (approx. US$36 billion) for the third quarter ended Sept. 30, 2010, up 12% over 3Q 2009. The figure tops the company's previous record for quarterly revenue (39.25 trillion won in 4Q 2009).
The Seoul-based maker of appliances and consumer electronics also set a quarterly record for net income: up 17% to 4.46 trillion won (approx $4 billion).
Samsung's Digital Appliance Business achieved growth of 25% quarter-on-quarter, but reported that increased costs and investments in production and sales infrastructure pushed the appliance business into a deficit.
"In the third quarter, Samsung faced a challenging business environment including declining demand for PCs and TVs, along with a continued economic slowdown in developed markets such as US and Europe,” said Robert Yi, vice president and head of Samsung Electronics’ Investor Relations Team. “Despite this, we achieved strong revenue growth and profitability, which was built upon our cost competitiveness in memory semiconductors and increased sales of cutting-edge products such as our latest smartphones.”
Samsung expects strong year-end demand for TVs and mobile handsets during the fourth quarter of 2010, but also warned of several potential challenges to 4Q earnings. It expects oversupply in the memory semiconductor market will lead to reduced prices, and prices for LCD panels are also expected to keep declining. Recent appreciation of the Korean won may also hurt 4Q earnings.
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