Samsung Electronics says it expects operating profit in the first quarter to be approximately KRW5.9 trillion ($5.4 billion), which would be an 11.3% improvement from Q4 but 30.6% down on the first quarter of the previous year. Turnover in Q1 is expected to be around KRW47 trillion ($43.1 billion), 10.8% lower sequentially and 12.4% down year on year.
The company’s earnings guidance was better than many analysts had predicted, which reports suggest was thanks to improved performances in Samsung’s semiconductor and IT & Mobile businesses. Samsung will release its quarterly results later this month.
In separate news, Samsung Display is reported to be considering delaying a second round of investment to expand flexible display production at its A3 facilities as it carries out a restructuring in production and materials. The investment was originally scheduled for April but has been put on hold while Samsung alters processes and materials related to polyimide used to increase yields for flexible OLED displays. It has also been reported that Samsung Electronics has placed an order for eight million flexible panels per month, thought to be intended for use in a curved Galaxy S7 smartphone.
Last month there were unconfirmed reports that Samsung was considering plans to spin-off Samsung Display (Rumour: Samsung to Spin-Off LCD, OLED Units).