Samsung Electronics hailed its handling of the Covid-19 (coronavirus) situation, as gains in the mobile and semiconductor sectors contributed to its highest-ever quarterly revenue.
On an earnings call, EVP of Investor Relations Ben Suh noted the pandemic continued to impact operations during Q3, resulting in “difficult to predict market conditions”.
The company exceeded “market expectations” said Suh, noting “demand for consumer products was much stronger than expected”. Canny management of its global supply chain was also a “key factor for the significant increase in sales”, along with recovery “in component demand in the mobile segment”.
Operating profit for its IM division (comprising the IT and Mobile Communications units) grew from KRW2.9 trillion ($2.6 billion) in Q3 2019 to KRW4.45 trillion, on revenue of KRW30.49 trillion, up 4 per cent.
The company pointed to strong smartphone sales as a factor in the unit’s growth, citing its flagship Note20 and Z Fold2 models, “a recovery in demand for mass-market” units, and stronger tablet and wearables sales.
But it noted its networks business was impacted by Covid-19, which delayed some projects in its home market, albeit it enjoyed success in the US through Verizon, its “largest” 5G deal to date.
Semiconductor sales grew 7 per cent to KRW18.8 trillion, of which KRW14.3 trillion came from memory chips, an 8 per cent rise.
Display panel turnover fell 21 per cent to KRW7.3 trillion, with the Device Solutions unit as a whole registering a 3 per cent increase to KRW25.9 trillion and operating profit of KRW6 trillion, up 42.4 per cent.
Net profit of KRW9.27 trillion was notably up on the KRW6.11 trillion in Q3 2019, with revenue rising from KRW62 trillion to KRW66.96 trillion.Subscribe to our daily newsletter Back