Seoul, Korea — Samsung Electronics reported record revenue of $18.2 billion for the third quarter of 2007, ended Sept. 30.

Operating profit and net income for the quarter were $2.25 billion and $2.38 billion respectively, on a parent basis. Operating profit on a consolidated basis reached $2.98 billion, a 93 percent increase over the last quarter.

Record quarterly sales in the telecommunication handset business, coupled with a strong performance by the semiconductor business, despite challenging market conditions, fueled the company’s overall performance. The LCD and digital media businesses also maintained leadership positions in advance of significant growth expected in the traditionally strong holiday season, according to the company.

“During the third quarter, all businesses of the company, including semiconductors, demonstrated solid performances on the foundations of their product and cost competitiveness,” said Dr. Woosik Chu, executive VP and head of Samsung Electronics’ investor relations team. “Our results demonstrate strong fundamentals throughout the company, with earnings expected to continue trending upward as the fourth quarter brings greater demand for mobile phones and LCD TVs.”

The telecommunication network business posted an operating profit of $642.5 million on the quarterly revenue of record-high $5.53 billion.

Robust sales of premium phones, including the “Ultra Edition,” and a solid performance in emerging markets helped boost sales to a single-quarter record of 42.6 million units. This strong performance led the accumulated unit sales of the company to more than 115 million units, exceeding last year’s total of 114 million, Samsung reported.

The average sales price for the third quarter increased to $151 from $148 for the second quarter with the operating margin of the business reaching 12 percent, an increase of 4 percent over the second quarter, the company said. Annual sales of mobile phones are projected to reach 157 million units if fourth-quarter results equal those of the third quarter, which Samsung said will solidify its position as the world’s second-largest mobile phone provider.

The LCD business posted revenues of $4.6 billion, with operating profit of $729.6 million. Despite depreciation occasioned by the start of the 8G line of the company’s S-LCD joint venture, operating margins for the unit hit 17 percent, an increase of 8 percent.

Sales of 40-inch or larger sized panels hit 230 million units. In the fourth quarter, the company plans to further strengthen its position in the 46-inch or larger sized panel market by accelerating operation of its 8G line and maximizing cost effectiveness, the company said.

The digital media business posted an operating loss of $130.7 million on revenue of $1.6 billion on a parent basis. However, its operating profit on a consolidated basis reached $261.3 billion. The robust sales of “Bordeaux Plus” LCD TVs, reaching more than 2 million units for the six months after launch, are regarded as a main contributor to the result.

The digital appliance division posted revenue of $1.01 billion and an operating loss of $65.3 million. On a consolidated basis, operating profit reached $108.9 million, putting it at a profit for the third consecutive quarter.

”The company will maintain its momentum as the fourth quarter, a high-volume season, arrives and steady demand for major products like memory chips, mobile phones, LCD panels and TVs continues to grow,” Dr. Chu said. “When new growth engines such as the printer business and System LSI truly engage, coupled with our current businesses remaining competitive, Samsung will be ideally positioned for maximum strength and profit.”

Release Date: 
2007-10-12 14:44:00
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Abstract Web: 
Seoul, Korea — Samsung Electronics reported record revenue of $18.2 billion for the third quarter of 2007, ended Sept. 30.
Article Type: 
News
nstein articleid: 
259810
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