SAN FRANCISCOSouth Korea's Samsung Electronics Co. Ltd. said Friday (April 30) it posted record operating profit on strong first quarter sales growth driven by its components business, especially semiconductors.
Samsung (Seoul, South Korea) said first quarter revenue reached 34.6 trillion won ($31.2 billion), up 21 percent compared with the first quarter of 2009. But first quarter revenue was down 12 percent compared with the fourth quarter of 2009.
First quarter net profit reach 3.99 trillion won ($3.6 billion), Samsung said. The company's consolidated operating profit for the quarter was 4.41 trillion won ($4 billion), a 643 percent year-over-year increase, Samsung said. The first quarter operating profit tops the company's previous high of 4.22 trillion won, set in the third quarter 2009, Samsung said.
Samsung said first quarter operating profit from its semiconductor business was nearly 2 trillion won ($1.8 billion), compared with a loss in the first quarter of 2009. Chip revenue reached 8.2 trillion won ($7.4 billion), up 57 percent year-to-year, Samsung said.
DRAM prices rose in the first quarter due to supply constraints, Samsung said, while demand for NAND memory remained steady due to strong demand for smartphones and mobile products, Samsung said.
Samsung said Thursday it is ramping up 40-nm class production of high-density DDR3 memory chips to accommodate increased demand in server applications.
Operating profit for Samsung's LCD business increased by 40 percent compared with the first quarter of 2009, reaching 6.85 trillion won, as shipments increased despite typically weak seasonality, Samsung said.
In a statement, Robert Yi, Samsung's head of investor relations, said he is cautiously optimistic second-quarter earnings will improve due to continued strong memory chip markets, favorable LCD panel demand and increased sales of set products such as mobile handsets and TVs.