Samsung: operating profit grew by 20.9% in the third quarter

0
193

In the third quarter 2018 Samsung posted KRW 65.46 trillion in consolidated quarterly revenue, up 5.5 percent from a year earlier, and KRW 17.57 trillion in quarterly operating profit, up 20.9 percent. In particular, the Consumer Electronics Division, including the Visual Display and Digital Appliances businesses, posted KRW 10.18 trillion in consolidated revenue and KRW 0.56 trillion in operating profit for the third quarter. Earnings for the Visual Display Business improved both YoY and QoQ thanks to increased sales of premium products such as UHD and ultra-large screen TVs. In particular, QLED TV sales tripled YoY thanks to favorable market feedback for picture quality and differentiated features such as Ambient Mode and One Invisible Connection. Looking to the fourth quarter, the company projects the TV market to grow slightly YoY. Samsung will aim to strengthen its position in the premium TV segment by preemptively capitalizing on year-end peak season demand through close partnerships with distributors and by extending sales of strategic products such as QLED and ultra-large screen TVs. In 2019, overall TV market demand is expected to remain the same as this year. Samsung will seek to improve profitability by solidifying its position in the premium market with QLED and ultra-large screen TVs while expanding sales of QLED 8K TV and reinforcing its lineup of ultra-large TVs of 75-inches and above.
For the Digital Appliances Business, earnings decreased slightly YoY despite increased sales of premium products such as Chef Collection refrigerators and Flex-Wash washers, amid economic slowdowns in emerging markets. In the fourth quarter, although market demand may decline due to the global trade issues and foreign exchange risks in emerging markets, Samsung will focus on strengthening regional peak-season promotions through partnerships with distributors and continue to increase sales of premium products such as large size dryers and Air Cube air purifiers. Looking ahead to 2019, Samsung will focus on improving profitability by releasing innovative premium products, expanding online sales, and strengthening its B2B business with built-in appliances and system air conditioners.

LEAVE A REPLY

Please enter your comment!
Please enter your name here