Samsung Q319 Results Better than Expected
October 14, 2019
Samsung Electronics posted sales for Q319 of 62 trillion won, beating the average projection compiled by Bloomberg of 61.14 trillion won. Samsung won’t provide net income or break out divisional performance until it releases final results later this month. Operating income was 7.7 trillion won ($6.4 billion) in Q319, according to estimates compiled by Bloomberg, a profit decline of more than 50% as the slump in its memory chip business continued to weigh on earnings. Strong sales of its new Galaxy Note 10 smartphone have been recorded at home and in Europe, while there are early signs its global memory chip business will stabilize next year. From 1Q20, IM operating profit is expected to grow on the launch of the Galaxy S11 and from 2Q20, higher DRAM contract prices will propel operating profit above KRW9tn.
Samsung Display CEO Lee Dong-hoon said South Korean companies should step up technical innovation to change the game rules of market competition. "In order to lead the change and seize the opportunity for growth in it, we must completely change the game rules of market competition with our hands. We should move away from the past structure of quantitative competition, step up technological development with innovative ideas and move first toward an era of qualitative competition, in which no one can easily imitate," Lee told a business meeting in Seoul on October 7.
Trade ministry data showed South Korea's display exports in September fell 17.1 percent on-year to $1.89 billion as China embarked on the mass-production of flat-panel displays, leading to a fall in LCD panel prices that forced the display unit of Samsung Electronics to adjust production by shutting down one of its LCD lines in Asan in September. Jay Y. Lee, the virtual head of South Korea's largest conglomerate, may disclose a new strategy to focus on the production of quantum dot organic light-emitting diode (QD-OLED) panels. From:email@example.com