Quarterly running profit at KRW 9.38 trillion on sales of KRW 65.39 trillion
Market prerequisites to fortify for substances trade in 2d half
Korea – WEBWIRE – Wednesday, April 28, 2021
Samsung Electronics this day reported financial results for the main quarter ended March 31, 2021.
Total consolidated earnings was KRW 65.39 trillion, a 6% amplify from the outdated quarter and a file for the main quarter. Running profit elevated 4% from the outdated three-month duration to KRW 9.38 trillion as right sales of smartphones and user electronics outweighed lower earnings from semiconductors and displays.
The semiconductor trade saw an earnings decline quarter-on-quarter (QoQ) despite right memory shipments, essentially attributable to the manufacturing disruption at the Austin fab, and a downward vogue in NAND prices, whereas preliminary bills of contemporary line ramp-up connected to superior node migration also weighed on the implications. Profit from the Display Panel Enterprise fell quarter-on-quarter thanks to stale seasonality of cell products.
Earnings at the Mobile Communications Enterprise rose vastly as sales of flagship and mass-market smartphones elevated and contributions of products in the Diagram Ecosystem similar to pills, PCs and wearables grew. The Networks Enterprise maintained right efficiency on the befriend of continued expansion of 5G globally.
The Person Electronics Division reported elevated profit both quarter-on-quarter and yr-on-yr as demand remained right for digital home equipment and top charge TVs.
Within the 2d quarter, earnings at the semiconductor trade is anticipated to amplify as memory market prerequisites fortify on the befriend of right server demand. The Foundry Enterprise has viewed a paunchy resumption of manufacturing at the Austin fab, whereas the Diagram LSI Enterprise is anticipated to continue to be impacted from the outdated quarter?s foundry disruption. For displays, cell panel sales tend to decline attributable to stale seasonality for cell phones and the effects of some factor shortages.
The Mobile Communications Enterprise is determined to come all over earnings and profit lower as flagship smartphone sales topple and a few substances abilities present components. The Company plans to cleave again the impact from substances by leveraging its global present chain administration (SCM) capabilities. The Person Electronics Division will specialize in bolstering sales of contemporary products similar to Neo QLED units and expanding sales of the Bespoke lineup.
For the 2d half, market prerequisites are expected to fortify for the factor trade with the Company continuing to increase product and technology leadership. In smartphones and user electronics, the Company will specialize in strengthening the highest charge category leadership. On the alternative hand, global macroeconomic risks, at the side of uncertainties over demand connected to COVID-19, tend to persist.
The Memory Enterprise is anticipated to come all over right demand for server and cell products and the Company will flee up migration to 15-nano DRAM and 128-layer sixth-technology V-NAND as smartly as magnify software program of vulgar ultraviolet (EUV) lithography processes. The Diagram LSI Enterprise will maximize present capabilities by cooperating with foundries at home and out of the country, whereas the Foundry Enterprise will magnify present with mass manufacturing at the Pyeongtaek Line 2.
The Display Panel Enterprise will continue to amplify adoption of OLED panels and set a foundation for quantum-dot (QD) displays in substantial-sized panels.
The Mobile Communications Enterprise plans to post right profitability by popularizing foldable units, expanding the lineup of mass-market 5G phones and rising sales of pills, PCs and wearables. The Networks Enterprise will continue to tackle demand from rising 5G commercialization globally whereas the Person Electronics Division will come all over to secure profitability by expanding sales of top charge products.
The Company?s capital expenditures in the main quarter stood at KRW 9.7 trillion, at the side of KRW 8.5 trillion spent on semiconductors and KRW 0.7 trillion on displays.
Semiconductor Earnings Decline, to Toughen Critically in 2nd Quarter
The semiconductor trade posted KRW 19.01 trillion in consolidated earnings and KRW 3.37 trillion in running profit in the main quarter.
The Memory Enterprise saw a minute profit decline attributable to a downward vogue in NAND prices and preliminary bills connected to ramping up new lines, despite overall decent demand backed by server and cell products.
For DRAM, demand for cell stayed right despite the stale seasonality attributable to releases of contemporary units by main possibilities and elevated penetration of 5G smartphones. Question from PC remained right as online-essentially based completely activities became routine for global buyers.
Server demand elevated vastly yr-on-yr, as express-per-field rose attributable to rising adoption of a brand new server CPU and as demand was right essentially from datacenters. Question for user products was also right, attributable to an amplify in 4K high-definition express and increase in TV and space-top field memory express to make use of streaming companies.
As for NAND, demand from cell was robustly supported by right smartphone sales alongside with rising demand and express-per-field. Server SSD saw increase in demand when compared to the outdated quarter thanks to the faulty attain of stale demand in the outdated quarter as main data heart firms resumed storage investments.
Taking a look to the 2d quarter, the Company expects to fortify earnings vastly amid favorable trade prerequisites, which comprise right demand all over all applications.
DRAM demand is liable to defend sturdy thanks to the expanding 5G market and connected increase in express-per-field and reduce demand will continue to be right backed by right demand for cloud applications. PC demand will defend right as tutorial laptops enter peak seasonality.
For NAND, demand is anticipated to take up thanks to rising express-per-field from expanding 5G line-usa main possibilities. Question for Server SSD is liable to defend right attributable to elevated storage demand from possibilities and a high capacity vogue with the discharge of a brand new CPU. The Company will actively take care of the amplify in demand for high-capacity SSD with 8TB or extra, whereas accelerating migration to the industry?s handiest single-stack essentially based completely 128-layer sixth technology 512Gb V-NAND to toughen technological leadership and charge competitiveness.
For the 2d half, amid the accelerating financial restoration from persisting stimulus programs in a range of international locations, demand for servers and storage will befriend rising thanks to expanding funding in data facilities and the high capacity vogue with the discharge of a brand new CPU. Mobile demand will befriend rising with the open of contemporary units from main possibilities and the substantial penetration of 5G and PC demand will remain right backed by continuing demand for upgrades and extra objects in households.
Based on right, all over-the-board demand, DRAM prices are expected to continue the upward vogue thru the 2d half of the yr. For NAND in the 2d half, demand clearly applications is anticipated to exceed present attributable to a controller present-demand imbalance for solution products.
Moreover, 15-nm DRAM and 128-layer sixth Expertise V-NAND will force bit increase and charge competitiveness in the 2d half, and the Company will continue to toughen technology competitiveness by making use of EUV on multiple layers of the 14-nm DRAM essentially based completely on industry-leading technology and thru the ramping-up manufacturing of solution products adopting double-stack essentially based completely 176-layer 7th technology V-NAND in the 2d half.
The Diagram LSI Enterprise elevated present of cell SoCs and image sensors in the main quarter backed by launches of flagship and high-terminate smartphones, but earnings remained principally flat QoQ attributable to impacts of cell DDI present components attributable to foundry manufacturing disruption. On the alternative hand, the Company bolstered technological leadership by releasing the Exynos 2100, its first top charge 5G-integrated cell processor, as smartly as a 50-megapixel ISOCELL image sensor with superior Twin Pixel Pro.
Within the 2d quarter, demand for cell substances is anticipated to weaken attributable to a seasonal decline in smartphone demand and continuing effects of the disruption of foundry manufacturing in the outdated quarter. As for the 2d half, amid the chance that the original present shortages will persist, the Company will maximize its functionality to present chips by strengthening cooperation with the in-home foundry and expanding using outsourced foundries.
The Foundry Enterprise saw its earnings decline in the main quarter attributable to a disruption of manufacturing at the Austin fab in the U.S. from a main power outage. On the alternative hand, the Company continued its efforts to toughen its technological leadership by starting the improvement of the 2nd technology 3-nm task and finishing the improvement of the 14-nm and 8-nm RF processes to guide the 5G market.
The manufacturing line in Austin has been fully normalized in the 2d quarter. The Company will prepare to magnify present in the 2d half of the yr thru the originate of mass manufacturing at the Pyeongtaek Line 2 and continue to guide technological leadership by reinforcing its differentiated equipment solutions. Within the 2d half, increase in the foundry market is anticipated to exceed outdated projections attributable to the acceleration of 5G penetration, a resumption of company IT investments, and rising demand from possibilities securing security stock. The Company will acknowledge to rising customer demand thru active present expansions thru paunchy operation of the Pyeongtaek Line 2, and can simply magnify its global customer bases and diversify applications.
Display Earnings Toughen YoY on Wider OLED Adoption; Question Expected to Weaken in 2Q
The Display Panel Enterprise posted KRW 6.92 trillion in consolidated earnings and KRW 0.36 trillion in running profit for the main quarter.
Mobile worth earnings declined QoQ thanks to chip shortages affecting main smartphone possibilities and off seasonality. On the alternative hand, earnings improved yr-on-yr (YoY) because the expanded adoption of OLED displays from flagship to entry-stage units drove increase. Plentiful displays saw a drop in earnings attributable to ongoing conversion of manufacturing lines in preparation for the subsequent technology TVs.
Taking a dwell up for the 2d quarter, Samsung expects stale demand for cell displays when compared to the outdated quarter thanks to the seasonal impact and as buyers tackle off shopping new smartphone units except later in the yr. The Company targets to eradicate utilization charge and secure profitability by advancing the manufacturing. For substantial displays, it would possibly most likely perchance well possibly continue to soft the potential for the transition to new trade model essentially based completely on QD worth technology.
Within the 2d half, the smartphone market is forecast to continue its restoration thanks to the rising demand for 5G smartphones. The Company will strive to occupy panel substances secured and technology vogue performed in time to express panels in a right system for main possibilities.
In particular, demand for foldable phones and diversified IT units is anticipated to continue to grow in the post-pandemic era. The Company will specialize in addressing such demand and exploring new applications similar to automotive to toughen its leadership in the OLED market. For substantial displays, Samsung will channel all its efforts in direction of making ready for the mass manufacturing of QD displays, the subsequent technology panel technology.
Mobile Profitability Strengthens in 1Q; To Toughen Management in Premium Section
The IT & Mobile Communications Division posted KRW 29.21 trillion in consolidated earnings and KRW 4.39 trillion in running profit for the main quarter.
Whereas market demand lowered QoQ amid stale seasonality, the Company saw overall demand making improvements to from a yr earlier when the market was vastly impacted by COVID-19. The Mobile Communications Enterprise saw field matter increase in both earnings and earnings from the outdated quarter. Flagship smartphone sales elevated QoQ underpinned by the open of Galaxy S21, as smartly as mass-market units similar to Galaxy A-Collection striking forward right sales efficiency. Diagram Ecosystem products at the side of tablet, PC and wearables also contributed to the profit increase in the main quarter.
Taking a dwell up for the 2d quarter, sales of contemporary Galaxy A products similar to A72 and A52 are expected to ramp up and pills, wearables and Galaxy E book ? a newly-introduced notebook PC ? are expected to remain right. On the alternative hand, diminishing new product effects for the flagship model and the factor present shortages tend to weaken earnings of the Mobile Communications Enterprise QoQ. By rebalancing present with its global SCM capabilities, the Company will minimize the trade impact and strive to secure profitability.
For the 2d half, market demand is forecast to determine up better to the pre-COVID stage on an annual basis backed by a late financial restoration and continued expansion of the 5G market. The Company will strive to provide right earnings and toughen its leadership in the highest charge segment by popularizing the foldable category, whereas also enhancing aggressive mass-market 5G lineup and extra rising its tablet, PC and wearable firms.
As for the Network Enterprise, sales in the main quarter elevated QoQ with sturdy profitability essentially led by trade increase in North The us and Japan. The Company will continue with its 5G tools expansion in Korea and community rollouts in in any other country market at the side of North The us and Southwest Asia. The Company will remain active in commercializing 5G community globally whereas exploring new trade alternatives.
Sturdy Earnings for TVs and Home equipment as Dwell-at-Home Question Continues
The Person Electronics Division, produced from the Visible Display and Digital Home equipment firms, recorded KRW 12.99 trillion in consolidated earnings and KRW 1.12 trillion in running profit in the main quarter.
Question for TVs declined QoQ following the yr-terminate peak in the outdated quarter, but elevated YoY attributable to sustained demand in superior markets. The Company posted both stronger sales and profit YoY because it leveraged its global SCM capabilities to straight away acknowledge to heightened demand. It also saw elevated sales of its top charge products, at the side of right preliminary sales of the new Neo QLED lineup.
Within the 2d quarter, the Company expects TV demand to amplify YoY with main sporting events at the side of the UEFA Euro 2020 and the Summer Olympic Games expected to eradicate yell. On the alternative hand, risks persist round COVID-19 as new surges in all places in the globe result in extra lockdown measures. The Company will aim to amplify profitability by focusing on sales of its Neo QLEDs, responding to right demand for home leisure products, and efficiently launching its new Micro LED products for home.
Within the 2d half, a swap of demand from home leisure to out of doors activities is anticipated as extra international locations reach herd immunity, ensuing in weaker demand for TVs. The Company will carefully track market prerequisites and acknowledge in a flexible system, whereas continuing its specialize in sales of top charge and standard of living product categories.
Question remained right in the main quarter for the Digital Home equipment Enterprise, despite traditionally stale seasonality. Earnings rose attributable to right sales of top charge products similar to customizable Bespoke refrigerators, as elevated time at home ended in stronger interest in home home equipment and within diagram.
Whereas demand is anticipated to defend right in the 2d quarter, rising field matter and logistics bills are expected to pose a chance. The Company plans to acknowledge by focusing on the expansion of its Bespoke Home platform, introducing new product categories and expanding into extra markets.
Uncertainties are expected to continue in the 2d half for the digital appliance market. The Company will continue to specialize in the worldwide expansion of its Bespoke lineup whereas extra strengthening its online and B2B sales capabilities.
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