As expected, Samsung today reported its first quarter 2013 results. The company reported a whooping operating profit of 8.78 trillion won ($7.9 billion), while revenues were 52.87 trillion won ($47.6 billion). The consolidated net profit for the same quarter was 7.15 trillion won. The IT & Mobile Communications (IM) Division which comprises the Mobile Communications, Networks, and Digital Imaging businesses, achieved profitable results backed by strong smartphone sales coupled with reduced marketing expenses.
“Although market uncertainties from the European crisis and the slow global economic recovery are still lingering, we expect to increase R&D spending for strengthening our competitiveness ahead of planned new product launches,” said Robert Yi, Senior Vice President and Head of Investor Relations. However, “We may experience stiffer competition in the mobile business due to expansion of the mid- to low-end smartphone market while TV growth will continue to wane in developed markets.”
- The IM Division rang up the first quarter with revenues of 32.82 trillion won, a 7-percent increase from the previous quarter.
- The Semiconductor and Display Panel segments were each accountable for 1.5 trillion won in capex spending.
- Samsung’s Semiconductor businesses – including Memory and System LSI – posted consolidated 8.58 trillion won in revenue, a 11-percent drop from a quarter earlier.
- PC DRAM supply continued to decline in the quarter
- The Display Panel business recorded revenue of 7.11 trillion won in the first quarter while posting an operating profit of 77 billion won.
- The IT & Mobile Communications division – consisting of Mobile Communications, Networks and Digital Imaging businesses – registered operating profits of 6.51 trillion won on 32.82 trillion won in revenue for the March quarter.
- The Consumer Electronics Division posted an operating profit of 230 billion won for the quarter on revenues of 11.24 trillion won.
- The Visual Display business accounted for 7.43 trillion won of earnings.