Korea's Samsung SDI Posts Massive Rise in Net Profit
Jul 22, 2004
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South Korean display maker Samsung SDI Co. said its net profit for the second quarter jumped 114.2 percent to a record high due to rising demand for flat-panel screens.

On a parent-only basis, the company reported 243.5 billion won (approx. U.S. $210.1 million) in net profit for the 3 months to June, compared with 113.7 billion won a year earlier.

Second-quarter sales gained 57.7 percent year-on-year to 1.64 trillion won from 1.04 trillion won a year earlier, the company said. During the quarter, operating income doubled to 181.4 billion won, compared with 90.1 billion won a year ago.

The company's group sales, which include those from overseas affiliates, rose 56.3 percent year-on-year to 2.47 trillion won. Group operating income soared 71.3 percent to 295.7 billion won, Samsung SDI said.

Samsung SDI, 20 percent owned by Samsung Electronics Co., attributed the results to growing demand for its three key products -- liquid crystal displays (LCDs), plasma display panels (PDPs), and organic light-emitting diode (LED) flat-panel displays.

In the second quarter, Samsung SDI sold about 42 million LCD screens, up 16.7 percent from the previous quarter. The company also sold 18 million PDPs for the quarter, up 7.2 percent from the previous quarter. Sales of organic LEDs amounted to 48 million units, up 4.4 percent from the previous quarter.

Samsung SDI is depending on increasing demand for large flat TV screens, called plasma display panels, and color display screens for cell phones for growth as consumers turn to better-looking and easy-to-use technologies.

For the second quarter, Samsung SDI's traditional cathode ray tube sales climbed 4.3 percent quarter-on-quarter to 1.1 trillion won. Revenue from sales of LCD screens rose 30.2 percent to 827 billion won, the company said.

Revenue from sales of rechargeable batteries rose 5.5 percent quarter-on-quarter to 116 billion won. But revenue from sales of PDPs sank 5 percent to 264 billion won, Samsung SDI said.

The second-quarter results were slightly better than expected in the market, analysts said. "The results show Samsung SDI's growth in PDPs and rechargeable batteries is expected to slow in coming quarters," noted Bae Sung-ryul, an analyst at Hyundai Securities Co. (Yonhap)

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