Increased by 17.48% and 44.19% respectively compared to last year
‘Galaxy 21’ surpassed 1 million in 57 days
Semiconductor division to recover from 2Q
Smartphones, TVs, and home appliances played a big role in Samsung Electronics’ earnings surprise that exceeded market expectations in the first quarter of this year.
Semiconductor earnings were hit by the downtime of the Texas plant in the United States, but the retaliatory consumption effect of Corona 19 offset these negatives.
According to the provisional results for the first quarter announced by Samsung Electronics on the 7th, sales were 65 trillion won and operating profit was 9,3 trillion won, up 17.48% and 44.19% from the previous year, respectively. Initially, the market expected an operating profit of 8 trillion won, recording an earnings surprise higher than market expectations.
The performance pattern by division is contrasted with last year. In the first half of last year, the semiconductor division’s performance was remarkable due to the Corona 19 effect, and the set division’s performance such as smartphones and home appliances deteriorated.
On the other hand, this year, due to the shutdown of the Austin semiconductor plant due to the cold wave in Texas, the semiconductor division saw poor performance, and smartphones and home appliances saw a special prolonged COVID-19 outbreak.
Samsung Electronics has not disclosed the results of each business division as it has been announced tentative results. The securities industry estimates operating profits of around 3.6 trillion won in the semiconductor division (DS) and around 4.6 trillion won in the smartphone division (IM).
It is an analysis that consumption suppressed by Corona 19 led to smartphones. The Galaxy S21, which was released early in January instead of March, exceeded 1 million units in 57 days of release, and the low-end Galaxy A series also showed strong performance.
Consumer electronics (CE) was also active. The customized home appliance’Bespoke’ is in the spotlight, and operating profit appears to have reached KRW 1 trillion. There is also an estimate that Samsung TV sales volume increased by 15% from last year, centered on the premium lineup.
For semiconductors, operating disruption due to a power outage in Texas, DRAM 1z nano process, and an increase in initial cost burden from the start of operation of the 2nd factory in Xi’an NAND Flash, are likely to have a negative impact on earnings.
In the semiconductor division, it is predominantly forecast that earnings will improve from 1Q to 2Q. This is because the bad news for the shutdown of the Austin plant is over, and the strong semiconductor prices will be reflected in earnest from 2Q. It is possible that the Texas government’s loss compensation for power outages will be reflected in the second quarter earnings.
/ Reporter Ji-young Shin [email protected]