Samsung Electronics (KRX:005930), the Korean tech behemoth has a presence in nearly every tech sphere. From refrigerators to smartphones, the company produces all types of products. The Samsung Galaxy Note 7 is also due in a couple of days. Right now, its earnings for Q2 FY16 are out, so lets see how Samsung’s doing in terms of numbers.
Samsung Electronics (KRX:005930) Reports Operating Profit Increase Of 1.24 Trillion Won Year On Year
Looks like things are slowing down at Samsung when it comes to operating profits. Operating profits for FY16 Q2 stand at 8.14 trillion Won, an increase of 1.24 trillion over the year. When compared to year on year growth for Q1, this marks for a 0.46 trillion decrease. Quarter on Quarter results are strong however, with operating profits for the previous quarter being 6.68 trillion.
The Korean manufacturer is reporting that OLED demand will increase in the future. Quarterly rise in OLED profits is due to increased demand of flexible panels. Keep in mind that we’re talking about TV OLEDs over here – not smartphone ones. For smartphones, the company’s looking to target China more aggressively, particularly for low and mid level devices.
Summing it all up, both sales and revenue have increased for Samsung (KRX:005930) YOY and QOQ. Breaking it down, the company still needs to pay attention towards critical areas which include Display Panels and semiconductors. 10nm is expected to debut next year, so we should see growth over here in the future. The decline in display panels can be attributed to sluggish economic conditions in emerging economies.
Consolidated Sales and Operating Profit by Segment based on K-IFRS (2014~2016.2Q)
Note 1: Sales for each business include intersegment sales
Note 2: CE (Consumer Electronics), IM (IT & Mobile Communications), DS (Device Solutions), DP (Display Panel).
Note 3: Information on annual earnings is stated according to the business divisions as of 2016.