Operating Profit Exceeds 10 Trillion Won for the First Time in 7 Quarters
Sales Also Reach 74 Trillion Won... Up 23.31% from Last Year
Analysis of Semiconductor Performance Improvement Impact
DS Division Performance Forecast Likely to Be Revised Upward
Samsung Electronics recorded an 'earnings surprise' by posting an operating profit exceeding 10 trillion won in the second quarter of this year.
Samsung Electronics announced on the 5th that its consolidated operating profit for the second quarter of this year was preliminarily estimated at 10.4 trillion won, a 1452.24% increase compared to the same period last year. Sales reached 74 trillion won, up 23.31% from the same period last year.
This is the first time in seven quarters since the third quarter of 2022 (10.852 trillion won) that Samsung Electronics' quarterly operating profit has exceeded 10 trillion won. It also significantly surpassed last year's annual operating profit (6.57 trillion won). Market expectations were also greatly exceeded. According to the business and securities sectors, Samsung Electronics' second-quarter operating profit was expected to be about 8.2 trillion won, 12 times higher than the same period last year (668.5 billion won), and sales were expected to be around 73.8 trillion won, up about 23% from the same period last year.
This strong performance is attributed to a significant improvement in the semiconductor division's results due to the recovery in demand and price increases for memory semiconductors driven by the expansion of the artificial intelligence (AI) market. In particular, the rise in the average selling price (ASP) of DRAM and NAND greatly improved memory semiconductor performance beyond market expectations.
As these are preliminary results, Samsung Electronics did not disclose the performance by division on the day. The preliminary results were estimated based on the Korean International Financial Reporting Standards (IFRS) and were provided to assist investors while the financial closing has not yet been completed. Samsung Electronics is expected to provide detailed information through an earnings conference call later.
Initially, the industry estimated that the Device Solutions (DS) division, responsible for Samsung Electronics' semiconductor business, posted an operating profit of 4 to 5 trillion won. However, with Samsung Electronics releasing results exceeding market expectations, the performance outlook for the DS division is likely to be revised upward. In the first quarter, the DS division recorded an operating profit of 1.91 trillion won, marking a return to profitability for the first time in five quarters since the fourth quarter of 2022.
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