Samsung today released their Q3 2016 results that ended on September 30, 2016, Samsung recorded a revenue of 47.82 trillion won, a decrease of 3.87 trillion won YOY and recorded an operating profit for the quarter at 5.20 trillion won, a decrease of 2.19 trillion won YOY.
Samsung says the quarter was heavily impacted by the Galaxy Note7 sales and stronger Korean won but expects the upcoming quarter to improve its YOY earnings with strong performance in the components and mobile business.
The company estimates total capital expenditure (CAPEX) for 2016 will be over 27 trillion won, a record high for Samsung.
Here’s a breakdown of individual businesses.
Semiconductors:
The semiconductors business that comprises of Memory and System LSI divisions posted consolidated revenue of 13.15 trillion won and an operating profit of 3.37 trillion won.
The memory division saw a strong quarter due to the growth in demand for memory chips in the high-performance high-density mobile and server products. The System LSI business also posted good numbers due to demand for its 14nm APs, mid-to-low end SoCs and image sensors.
Samsung sees its leadership gaining momentum once it starts mass producing using 10nm process.
Display Panel:
The Display Panel division recorded a revenue of 7.06 trillion won and an operating profit of 1.02 trillion won due to increased sales of OLED panels and increased shipments of LCD TV panels. The OLED panel demand is strong, with increased shipments and expansion of high-end products.
Samsung expects the OLED panel demand to remain strong due to strong seasonality whereas LCD panels will see improvement with the uptake of large-sized UHD panels.
IT & Mobile Communications:
The IT & Mobile Communications division saw a significant decrease of revenue QoQ due to the discontinuation of Galaxy Note7. The business posted 22.54 trillion won in consolidated revenue and operating profit of just 0.10 won. Despite the Galaxy Note7, Samsung says the Galaxy S7 and Galaxy S7 edge along with mid and low-tier phones showed steady growth.
Good news for the coming quarter is Samsung expects to maintain profitability with strong sales of its flagship Galaxy S devices.
Consumer Electronics:
The CE division consists of Visual Display (VD), Digital Appliances (DA), Printing Solutions and Health and Medical Equipment (HME) businesses and cumulatively, the division posted consolidated revenue of 11.24 trillion won and a profit of 0.77 trillion won.
The VD earnings improved YoY by sales of premium UHD TVs and Curved TVs despite the TV market demand decreased due to weak demand.
The DA business also showed some improvement YoY due to sales of premium products like Chef Collection appliances and new AC models.
Looking ahead, Samsung expects solid performance for the division.