[Mediapen=Cho Han-jin] Samsung Electronics announced its earnings guidance for the second quarter of 2019. They estimated sales to be 56 trillion won and operating profit 6.5 trillion won.
Compared to the previous quarter, sales increased by 6.89% and operating profit increased by 4.33%. However compared to the second-quarter of 2018, sales decreased by 4.24% and operating profit(14.8 trillion won) plummeted by 56.29%.
Samsung’s record-breaking operating profit was in 3Q of 2018, coming from semiconductor boom. After reaching its peak, Samsung’s operating profit declined for the two consecutive quarters.
Even though 2Q’s earnings improved slightly, experts estimate the actual operating profit to be around 5 trillion won once excluding the one-time deal in the display division(900 billion won).
Earnings by each business divisions wasn’t announced this day.
The operating profit of Samsung’s core semiconductor business is expected to be around 3 trillion won. Compared to 3Q of last year’s 13.7 trillion won record, profit plummeted by nearly 10 trillion won.
On the bright spot, it seems that the display division is starting to make profits as sales of flexible OLED increased.
The IM division, in charge of smartphone, is expected to show poor performance. The shipment of smartphone increased, but the slowdown in sales of the Galaxy S10 series and the increased manufacturing costs for mid to low-end models became a burden.
Under favorable currency rate, the consumer electronics(CE) division seems to have enjoyed increased sales of QLED TV and home appliances.