Samsung Electronics is a global company that truly represents Korea. Samsung Electronics’ third-quarter sales record record high of 73 trillion won.
Samsung Electronics pursues a global first-class company that cares about people and society. Taking the value system of ‘Management Philosophy, Core Values, and Management Principles’ as the compass for management, our ultimate goal is to create the best products and services based on our human resources and technology to contribute to human society. To this end, the five management principles, which are promises to be kept by Samsung Electronics, have been specified as detailed principles and action guidelines and established as the Global Code of Conduct for all employees of Samsung Electronics. By internalizing values, we want to drive the continuous growth of Samsung Electronics and suggest future directions. [Source : Samsung Electronics’ Company Website]
Samsung Electronics surpassed the 70 trillion won mark in quarterly sales for the first time in its history in the third quarter of this year. Operating profit was the second highest ever. It is analyzed that the increase in semiconductor demand and price hikes for DRAM and NAND flashes that continued until the third quarter led to the results.
Samsung Electronics announced on the 8th that it recorded 73 trillion won in sales based on the consolidated financial statements (provisional) for the third quarter. This is more than 6 trillion won more than the previous record high of 3Q 2002 sales (66.96 trillion won). Compared to the previous quarter’s sales (636.7 trillion won), it increased by 14.65%. Operating profit for the third quarter was 15.8 trillion won, up 27.94% from the same period of the previous year and 12.57% from the previous quarter. It is the second highest in history after the third quarter of 2018 (17.57 trillion won), which recorded the highest profit ever due to the semiconductor boom.
As a result, Samsung Electronics’ cumulative sales in the first three quarters increased by 15.29 percent from the same period last year to 20.26 trillion won, and operating profit reached 37.75 trillion won, up 40.07 percent from the same period last year. Do-yeon Choi, a researcher at Shinhan Financial Investment, said, “The performance improved due to semiconductor demand, DRAM and NAND flash prices that continued until the third quarter, smartphone shipment recovery, organic light-emitting diode (OLED) utilization, and exchange rate effects.”
Although the performance of each division was not disclosed on the same day, it is believed that the semiconductor (DS) division alone made an operating profit of around 10 trillion won in the related industry and financial investment industry. Park Yu-ak, a researcher at Kiwoom Securities, said, “It seems that the memory price has risen from the previous quarter and demand has been brisk, resulting in a significant improvement in profitability.” The IT and mobile (IM) division is also estimated to have recorded an operating profit of about 4 trillion won. Song Myung-seop, a researcher at Hi Investment & Securities, estimated that “(Average selling price (ASP)) increased with the start of sales of foldable phones (end of August), and operating profit in the IM division would have increased by 15% compared to the previous quarter.”
However, 4Q earnings are expected to slow slightly. IT demand in the U.S., Europe, and China has been declining since the second quarter of this year, and semiconductor prices are highly likely to fall by 3-8% in the fourth quarter. It is believed that this is the reason why the share price has recently been weak. Samsung Electronics’ stock price seemed to rebound as it climbed to the 77,000 won level at the end of last month, but then sank again to the 71,000 won level. Despite the surprise announcement, Samsung Electronics’ share price fell 0.14 percent to 71,500 won on the same day.