Samsung Electronics Company has reported revenues of KRW39.44tn ($37.45bn) for the second quarter ended June 30, 2011, a 4% increase on year.
The company has attributed the rise in figures to the increase in mobile device sales, particularly the success of smartphones.
The company saw an 18% decline in consolidated net income to KRW3.51tn, while consolidated operating profit for the quarter was KRW3.75tn, as weakened demand reduced margins in the semiconductor and display panel businesses.
Telecommunications drove revenue growth in the second quarter, with sales rising 43% due to strong demand for Samsung’s GALAXY SII smartphone and other mobile devices.
Samsung’s Semiconductor businesses generated operating profits of KRW1.79tn, a decline from the KRW2.94bn registered the previous year.
Sales for the System LSI Business increased as demand for mobile application processors and high-quality image sensors rose.
The LCD Display Panel Business recorded an operating loss of KRW210bn on revenue of KRW7.09tn, down 9% in sales compared with the same period last year.
The Telecommunications businesses, including mobile communications and telecommunication systems, posted an operating profit of KRW1.67tn on revenue of KRW12.18tn, led by increased investment from mobile carriers in LTE network infrastructure.
Samsung’s flat panel TV shipments and profitability both increased for the quarter, as sales of LED TVs continued to pick up in developed and emerging markets.
Overall, flat panel TV market demand in the third quarter is projected to increase in the mid 10% range due to strong seasonality.
Samsung said it will continue to drive sales of the GALAXY SII and strengthen its product lineup with new mobiles featuring Long-Term Evolution technology.
In the third quarter, increased seasonal PC shipments are expected to boost demand in the key DRAM segment, although concerns remain over high inventory levels among PC manufacturers, and NAND supply is forecast to be tight due to strong seasonal demand driven by smartphone and tablet sales.
