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Samsung's Q1 operating profit drops 3.3%, but bullish about future

  • Samsung's (SSNLF) Q1 operating profit fell 3.3% to 8.49T Korean won ($8.2B) but topped consensus of 8.4T won.
  • Net profit excluding minority interests grew 7.3% to 7.48T won ($7.2B) and beat forecasts of 6.75T won, while revenues increased 3% to 53.68T won.
  • Operating profit at Samsung's mobile division fell 1.2% to 6.43T won ($6.2B) but surpassed expectations of 5.9T won, with the company shipping 113M phones and tablets. Margins were unchanged at 19.8%.
  • Operating earnings breakdown at other units: chip business almost doubled to 1.95T won from 1.07T won; display swung to a loss of 80B won from a profit of 770B won, hurt by increased costs for a production ramp-up and falling selling prices; TV and home-appliances 190B won.
  • Samsung forecasts that profits will rally in Q2 and beyond, lifted by strong sales of its new Galaxy S5 flagship device - which are expected to outstrip those of the S4 - as well as "improved sales of display panels and home appliances." (PR)
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