Both SEC and LGE Release Preliminary Q119 Financials; Sales and Profits Down Sequentially and Y/Y
April 08, 2019
Samsung Electronicsreleased preliminary 1Q results of 52twon ($45.7b US) in sales and an operating profit of 6.2twon ($5.5b US). Sales were down12.3% sequentially and down 14.1% Y/Y, while operating profit was down 42.6% sequentially and down 60.4% Y/Y. The major causes of the decline were listed previously as:
Long term the memory business will recover as demand for memory increases (doubling) with the conversion to 5G as Samsung has a 40% market share. But displays are expected to retain its cyclical trends and Samsung will at some point be impacted by the increasing yields and capacity of the Chinese OLED panel makers. Samsung’s mobile unit also is expected to suffer shipment volume and revenue decreases as smartphone sales have plateaued and Chinese OEMs increase market share.
LG Electronicsalso released preliminary 1Q results of 14.9twon ($13.1b US) in sales down 5.4% sequentially and 1.4% Y/Y. Their operating profit of 899.6bwon ($791m US) down 18.8% Y/Y. LGE provided no detail but the drop was likely caused by weak smartphone market, moderate TV sales, and a slow seasonal quarter.