◊System LSI makes profits just in a year
Samsung Electronics’ DS area’s performance will increase compared to same period of last year and previous quarters. Even if prices for D-RAM and NAND-Flash decreased, it was able to increase sales by inducing demand from the market by its high-tech micro-processing and 3D lamination technology.
System LSI business department, which made a deficit in last year, is able to make profits in second quarter as performance level of 14-Nano FinFET processing service and sales of Mobile Application Processor for Galaxy S6 series increased. It is predicted that System LSI’s sales in second quarter will be in middle end of 1.76 billion dollars (2 trillion KRW) and its business profit will be in front end of 79.4 ~ 88.2 million dollars (90 ~ 100 billion KRW).
Sales for DS’s semiconductor area in second quarter was able to reach in middle end of 8.81 billion dollars (10 trillion KRW) to maximum of front end of 9.69 billion dollars (11 trillion KRW). Sales for semiconductor in first quarter surpassed 8.81 billion dollars (10 trillion KRW) for the first time at 9.05 billion dollars (10.27 trillion KRW) and it is possible that it will surpass 9.69 billion dollars (11 trillion KRW).
Business profit increased from 2.58 billion dollars (2.93 trillion KRW) in first quarter to front end of 2.65 billion dollars (3 trillion KRW) in second quarter. As 20-Nano D-RAM achieved more than 40% in business profit rate, it was able to succeed in leading performance growth. Although sales for NAND-Flash increased about 176 million dollars (200 billion KRW) compared to same time last year, its business profit decreased about small margin.
Stock market and industry world are seeing that sales for Samsung Electronics’ semiconductors for third and fourth quarters will grow about to later end of 10.6 billion dollars (12 trillion KRW). Sales for memory that includes both D-RAM and NAND-Flash increased up to 7.94 billion dollars (9 trillion KRW); they are predicting that Samsung Electronics will keep its profit basis as quarterly sales for System LSI after third quarter will be 2.65 billion dollars (3 trillion KRW) and its business profit will grow up to later end of 176 million dollars (200 billion KRW) ~ early end of 265 million dollars (300 billion KRW).
Business profit for Display business within DS area will be about 441 million dollars (500 billion KRW), which is about the same as 459 million dollars (520 billion KRW) in previous quarter. It was able to make a steady performance due to increase sales volume of medium to small-sized OLED and expansion of premium-level TV panels just like first quarter.
But unlike its expectation, industry is predicting that it will be hard for Samsung Electronics to avoid slump in performance for large-sized panels in second half of 2015 due to extension of slump in demand from global TV markets and stronger attacks from Chinese companies with LCD.
■ [Table] Progress of performance level for Samsung Electronics’ DS area
▲Sales for semiconductors in past quarters are 8.63 billion dollars (9.78 trillion KRW (2014 2Q)), 8.73 billion dollars (9.89 trillion KRW (2014 3Q)), 9.39 billion dollars (10.65 trillion KRW (2014 4Q)), 9.05 billion dollars (10.27 trillion KRW (2015 1Q)), and middle end of 8.81~ front end of 9.69 billion dollars (10~11 trillion KRW (2015 2Q)).
▲Business profit for semiconductors in past quarters are 1.64 billion dollars (1.86 trillion KRW (2014 2Q)), 1.99 billion dollars (2.26 trillion KRW (2014 3Q)), 2.38 billion dollars (2.7 trillion KRW (2014 4Q)), 2.58 billion dollars (2.93 trillion KRW (2015 1Q)), and front end of 2.65 billion dollars (3 trillion KRW (f 2015 2Q)).
▲Sales displays in past quarters are 5.58 billion dollars (6.33 trillion KRW (2014 2Q)), 5.51 billion dollars (6.25 trillion KRW (2014 3Q)), 6.22 billion dollars (7.5 trillion KRW (2014 4Q)), 6.04 billion dollars (6.85 trillion KRW (2015 1Q)), and front end of 5.29 billion dollars (6 trillion KRW (2015 2Q)).
▲Business profit for displays in past quarters are 194 milliondollars (220 billion KRW (2014 2Q)), 53 million dollars (60 million KRW (2014 3Q)), 415 million dollars (470 billion KRW (2014 4Q)), 459 million dollars (520 billion KRW (2015 1Q)), and front end of 441 million dollars (500 billion KRW (2015 2Q)).
Staff Reporter Bae, Okjin | withok@etnews.com