Samsung Appliances Drive Revenue, 1Q Profit Still Down 30%
May 4, 2011
| Print this page
South Korea's Samsung Electronics Company reported first quarter 2011 revenues of 36.99 trillion Korean won (approx US$24.5 billion), up 7% from the first quarter of 2010, but also reported a net income of 2.78 trillion won, 30% less than 1Q 2010.
Samsung's Digital Media & Appliances business, as well as its Telecom and Semiconductor businesses, drove 1Q revenue growth. Operating profit of 0.10 trillion won (approx. $93 million) for Digital Media & Appliances marked a turnaround from the previous quarter. Digital Media & Appliances 1Q revenues were 13.52 trillion won (approx. $12.6 billion).
Growth in emerging markets and brisk sales in Europe of premium refrigerators, washing machines, and air-conditioners drove up revenue 13% compared with 1Q 2010.
Samsung will continue focusing on the launch of new premium and eco-friendly products in its appliance business, as well as enhancing global production efficiency.
Overall shipments of flat panel TVs fell 31% to 8.8 million units from the previous quarter. Profit was driven by increased sales of LED TVs, which now make up 39% of TV sales.
Emerging markets sales of LED TVs grew 420% year-on-year. For the remainder of 2011, sales of flat panel TVs are expected to remain slow in advanced countries, with emerging markets forecast to take up 55% of total demand by year end.
Back to Breaking News