Samsung Electronics have recorded 5.6 billion USD in operation profit for the 1st quarter and thus succeeded in creating V-shape rally. And LG is not better than the 1st quarter of last year, but had made improved business results than last quarter.
It is the result of the 1st quarter results that Samsung Electronics and LG Electronics both has announced on the 28th.
■Samsyung
Samsung Electronics recorded 44 billion USD in sales and 5.6 billion USD in business profit of the 1st quarter. Business profit had increased by 13% compared to previous quarter. It is 30% less than the 1st quarter of last year. Sales have decreased by 116% compared to previous quarter but have decreased only by 12% compared to same quarter of the last year.
Device Solution (DS) department, including the semiconductor, has worked as the cash cow. They recorded 3.1 billion USD business profit. IT Mobile (IM) has recorded 2.6 billion business profit, which is higher than expectation. However, consumer electronics (CE) department has recorded 131 million USD business profit loss.
Samsung Electronics official said, “Components business and smartphone business showed improved in results. Memory and 14nano mobile application processor (AP) is showing positive signs. Also IM’s marketing expense cut and expansion in smartphone sales has contributed to improving business profit.”
TV and home appliances has fallen back a bit due to rise of competitors and new European markets. Samsung Electronics told that there were 747 million USD worth negative effect due to currency fluctuation.
Samsung Electronics expects that they will have better results I 2nd quarter than the first because of start of Galaxy S6 sales. Stock market is even making expectation that Samsung will record 7.5 billion USD business profit in 2nd quarter.
■LG Electronics
LG Electronics recorded 13 billion USD in sales and 285 million USD in business profit 1st quarter. Business profit had increased by 11% compared to previous quarter but has dropped by 36% compared to the same quarter last year. 1st quarter sales record dropped by 8% compared to last quarter, and 11% increased compared to same quarter.
Home appliances business department had recorded 214 million USD in business profit and had made the best record. Mobile business department has recorded the most sales record of 3.35 billion USD since the beginning of the business in 2010. Business profit recorded 68 million USD.
LG Electronics TV business had recorded 5.8 million USD business loss.
Industry related official said, “2nd quarter and beyond may have big fluctuation due to how ‘Galaxy S6’ and ‘G4’ smartphone sales effects the market.”
Senior Reporter Kim, Seungkyu | seung@etnews.com