Samsung Electronics, Record operating profit of 1 trillion 20 billion won in Display business

Samsung Electronics lighted up that they recorded 7 trillion 60 billion won in sales and 1 trillion 20 billion won of operating profit in display business through 3rd quarter performance call having been progressed on 27th. Display business having recorded operating loss of 270 billion won in the first quarter contributed to enterprise-wide performances by recording large surplus of over 1 trillion won in the third quarter after having been converted to surplus of 140 billion won in the second quarter. Breakthrough 1 trillion won of quarter operating profit in display business could be made in 13 quarters after the second quarter of 2013 (1 trillion 120 billion won).

In case of OLED, the performance was improved by expanded portion of high value-added products including Flexible etc., in midst of total increased sales quantity. LCD was converted to surplus because profitability was enhanced by increased sales of high value-added products such as UHD/large size together with strengthened improvement on yield and cost under stable sale prices due to improvement of supply and demand. In case of TV panel sales, about 10% was increased vs. previous quarter in area basis, and 20% in quantity basis.

They forecasts that application of OLED panel will be increased continuously by main clients that pursue product differentiation in peak season entry of Smart phone in the fourth quarter. Samsung Electronics discloses that they will respond to the need on flagship model scent positively, and propel robust growth performance by improving effective product mixture.
Regarding LCD panel, they lights up that growth of UHD TV market and size enlargement will be continued in the midst of sale price’s stabilization in the fourth quarter. And they mention that sales expansion and enhancement of profitability will be propelled by expanding sales of high value-added products such as super large size, high solution, curved etc while strengthening yield and activities for cost improvement.
Also, Samsung Electronics is planning to do additional investment of 10.9 trillion won to OLED line increase until end of this year. This is the numerical value of increasing two times compared to last year.

In 2017, they are going to propel significant growth vs. previous year by regulating supplies of flexible products in order to positively respond to demand increase of main Smart phone enterprises in OLED panel section. Though difficult business environment is expected owing to constant capability expansion of Chinese enterprises and fierce competitions between enterprises in LCD panel section, they reveals that enlargement of TV sizes and trends of high solution will be persisted. Samsung Electronics has a plan of raising profitability by enforcing competitiveness through differentiated products and high value-added products such as UHD TV and large size ones etc.

Sales of Samsung Electronics in the 3rd quarter recorded 89 million cellular phones, and 6.5 million tablets. They forecasts that sales of cellular phones will sustain the level of previous quarter, and that of tablet will be increased. Samsung Electronics discloses that sales of 11 million LCD TVs will be recorded, and thus growth of 50% levels is expected.