SAN JOSE, Calif. - Samsung Electronics Co. Ltd. announced revenues of 36.99 trillion won ($34.6 billion) on a consolidated basis for the first quarter, a 7 percent increase year-on-year.
For the quarter, the company posted consolidated net income of 2.78 trillion won ($2.6 billion), a 30 percent drop year-on-year.
In its earnings guidance, Samsung estimated first-quarter consolidated revenues would reach approximately 37 trillion won ($34.6 million) with an operating profit of 2.9 trillion won ($2.7 million).
“A difficult business environment remained in the first quarter, due to rising costs of raw materials, uncertainties in the financial market in Europe, and the devastating earthquake in Japan,” said Robert Yi, vice president and head of Samsung Electronics’ investor relations team, in a statement. “But we will actively respond to such challenges by enhancing cost competitiveness in memory products through geometry migration, launching new smartphones and tablet PCs, as well as increasing the sales focus on premium LCD panels and TVs.”
In the same statement, Samsung said: ''The impact on earnings from volatility in foreign exchange was minimal, as the fluctuation of the Korean won against the US dollar and the euro was less than 1 percent. With regards to concerns over disruptions to the supply chain after the March 11 earthquake in Japan, Samsung expects the impact on its businesses to be relatively limited.''
Samsung’s semiconductor business recorded a consolidated operating profit of 1.64 trillion won ($1.5 billion) in the first quarter, down from the 1.96 trillion won ($1.8 billion) registered a year ago. Revenue reached 9.18 trillion won (8.6 billion), a 12-percent increase year-on-year.
The memory division posted 5.87 trillion won ($5.5 billion) in revenue for the quarter, a 5-percent jump up from a year earlier. ''Weak demand for PCs compounded by seasonal factors slowed sales of PC DRAM in the quarter, but orders for server DRAM and high-density memory used in smartphones and tablet PCs remained strong,'' according to Samsung.
Sales for the System LSI Division doubled to 2.32 trillion won ($2.2 billion) on-year, ''on the back of rising demand for smartphone application processors and image sensors.''
''In the second quarter, business conditions in the key DRAM segment are expected to improve slightly. Increased demand for NAND and System LSI products will also sustain growth momentum, as smartphone and tablet PC makers introduce new models,'' Samsung said.
The company's total panel shipments decreased by high-single-digit percent quarter-over-quarter, but increased approximately 10 percent year-over-year. Handset shipments were 70 million units in the period, up 9 percent year-over-year, but down 14 percent from the previous quarter.