Samsung Result 27/7/2017

Samsung announced FY17 Q2 results with revenues of KRW 61.00 trillion ($54.3 billion) and operating profit of KRW 14.07 trillion ($12.5 billion), resulting in a margin of 23%. Revenues jumped by 20% on a yearly basis while the operating profit increased by a significant 74%.

In FY17 Q2, the component businesses drove significant earnings growth, both on a yearly and quarterly basis, primarily due to strong memory demand for high-density DRAMs and SSDs for servers. System LSI contributed to earnings through increased sales of AP and CIS products while the Display Panel Business expanded sales of flexible OLED panels for premium smartphones and high-value LCDs with stable pricing. Profits from the Mobile Business, driven by robust sales for the Galaxy S8 and S8+, also increased significantly on a quarterly basis.

The Display Panel segment continued its growth trajectory while it posted KRW 7.71 trillion ($6.9 billion) in revenue and KRW 1.71 trillion ($1.5 billion) in operating profit for the quarter driven by increased sales of premium OLED displays and high-end, large-size LCD panels. Looking ahead to the second half for the OLED business, although the company forecasts increased sales of premium flexible displays, the initial costs of the new OLED production line during FY17 Q3 are expected to weigh on profits. As for the LCD business, while the company forecasts continued growth in the premium, large-size, high-resolution UHD TV panel segment, increased panel inventory of set makers amid capacity expansion in the LCD industry is expected.