In its Q3 performance this year, Samsung Electronics recorded overall revenue growth primarily driven by its semiconductor business, although its operating profit fell short of market expectations.
The semiconductor division’s operating profit, recorded at less than 4 trillion won, was impacted mainly by delayed recovery in PC and mobile demand and price declines due to increased supply of general-purpose DRAM from China.
Samsung Electronics’ consolidated operating profit for Q3 was 9.1834 trillion won, a 277.37% increase compared to the same period last year, but it did not meet the market expectation of 10.2932 trillion won.
During the same period, revenue reached 79.0987 trillion won, marking a 17.35% increase year-over-year and setting a new quarterly revenue record.
Net profit rose by 72.84% to 10.1009 trillion won, reflecting a stable growth trend.
The Device Solutions (DS) division, which includes semiconductors, posted an operating profit of 3.86 trillion won and revenue of 22.27 trillion won, a 112% increase year-over-year.
This growth was driven by increased sales of high-value products like HBM, DDR5, and server SSDs, due to rising demand for AI and servers. However, increased losses in the Foundry and System LSI segments impacted DS’s operating profit.
For Q4, Samsung Electronics plans to improve profitability in the DS division by expanding sales of high-value products and securing technology leadership, as inventory adjustments are expected in smartphones and PCs.
The company will continue its profit-focused strategy in DRAM by concentrating on high-performance HBM products and high-capacity server DDR5, and in NAND with the 8th generation V-NAND and PCIe 5.0-based products.
The Device eXperience (DX) division reported revenue of 44.99 trillion won and an operating profit of 3.37 trillion won, growing on the strength of flagship products like smartphones and tablets.
The Network business saw a slight decline in revenue due to the off-season effect, but growth in sales of large TVs and home appliances was considered a positive outcome.
Meanwhile, Samsung Electronics expects total capital expenditures of 56.7 trillion won this year, with 10.7 trillion won allocated to semiconductors and around 1 trillion won to displays.
R&D expenses reached a record quarterly high of 8.87 trillion won in Q3, demonstrating continuous efforts to strengthen technology leadership.
The market anticipates that Samsung Electronics is likely to set a new annual revenue record and that the semiconductor division may achieve annual revenue of 100 trillion won for the first time.
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