Samsung today announced its first quarter results ended March 31, 2012 with revenue of 45.27 trillion Korean won (nearly $40 billion US) on a consolidated basis, a 22-percent increase year-on-year. For the quarter, the company’s consolidated operating profit reached an all-time high of 5.85 trillion won (about $5.1 billion) representing a 98-percent increase year-on-year. Consolidated net profit for the January-March period was 5.05 trillion won.
Despite a decrease in sales of semiconductor chips and TVs due to seasonal factors, an increase in profitability in display panels and mobile phones pushed up quarterly operating profit margins by 1.7 percentage points to 12.9 percent. Samsung in its earnings guidance disclosed back on April 6 estimated first-quarter consolidated revenues would reach approximately 45 trillion won with consolidated operating profit of approximately 5.8 trillion won. Samsung’s Consumer Electronics businesses, which encompass Visual Display and Digital Appliances, registered an operating profit of 530 billion won in the quarter, up 550 percent year-on-year, on revenues of 10.67 trillion won.
Operating profit for the Display Panel Business turned around from the previous quarter to register 280 billion won on revenue of 8.54 trillion won in the first quarter. The consolidated operating profit for IT & Mobile Communications businesses reached 4.27 trillion won on revenue of 23.22 trillion won. The Display Panel business rebounded in the first quarter with operating gains of 280 billion won, following an uptick in demand for high-margin panels used in tablets, 3D/ LED TVs and premium OLED panels.
The company with looking into the second quarter expects to improve profitability in the chip business with a recovery in PC DRAM price and by expanding its new product category with mobile application processors based on 32 nanometer-class process technology. Samsung plans to also bolster its competitive edge in mobile phones with the debut of new high-end smartphones, and by reinforcing the full lineup of products and its presence in emerging markets. Although the best shot of the company would be its much awaited Galaxy S III smartphone which is scheduled to be released on May 3rd in London.
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