Samsung Q1 Profit Climbs

Samsung Electronics Co Ltd (SMSN.L,SSNNF.OB,SSNLF.OB) reported a profit for the first-quarter that climbed 45.06 percent from last year, reflecting strong demand for mobile devices and other technology during the pandemic. Quarterly revenue grew 18.19 percent from the prior year.

Looking ahead for the second quarter, the company expects earnings at the semiconductor business is to increase as memory market conditions improve on the back of strong server demand.

The Foundry Business has seen a full resumption of production at the Austin fab, while the System LSI Business is expected to continue to be impacted from the previous quarter's foundry disruption.

Looking ahead to the second quarter, Samsung expects weak demand for mobile displays compared to the previous quarter because of the seasonal impact and as consumers hold off buying new smartphone models until later in the year.

Looking ahead to the second quarter, sales of new Galaxy A products such as A72 and A52 are expected to ramp up and tablets, wearables and Galaxy Book - a newly-introduced notebook PC - are expected to remain solid.

For the second half, market conditions is expected to improve for the component business with the Company continuing to extend product and technology leadership.

The Memory Business is expected to see solid demand for server and mobile products and the Company will accelerate migration to 15-nano DRAM and 128-layer 6th-generation V-NAND as well as expand application of extreme ultraviolet lithography processes.

The Mobile Communications Business plans to post solid profitability by popularizing foldable models, expanding the lineup of mass-market 5G phones and increasing sales of tablets, PCs and wearables.

The company reported that its net income attributable to the shareholders of the parent company for the first-quarter climbed 45.06 percent to 7.09 trillion Korean won from 4.89 trillion won in the same quarter last year.

Operating profit for the quarter grew 45.53 percent to 9.38 trillion won from the previous year.

Consolidated revenue for the first-quarter grew 18.19 percent year-over-year to 65.39 trillion won.

The semiconductor business posted 19.01 trillion won in consolidated revenue and 3.37 trillion won in operating profit in the first quarter.

The IT & Mobile Communications Division posted 29.21 trillion won in consolidated revenue and 4.39 trillion won in operating profit for the first quarter.

The Consumer Electronics Division, comprised of the Visual Display and Digital Appliances businesses, recorded 12.99 trillion won in consolidated revenue and 1.12 trillion won in operating profit in the first quarter.

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