Samsung OZ Revenues Surge, Profits Up As Global Hits $16 Billion Profit For Quarter
Samsung Electronics Australia has delivered a record profit of $43M with revenues climbing during COVID lockdowns to a tad under $3 billion.
Globally Samsung is set to announce a A$16.1-billion-dollar profit for the second quarter off the back of a 20% lift in sales despite mobile phone and consumer electronic sales falling during the last quarter.
the Australian operation recently reported a $43M profit for 2021, up from $39M in the prior year.
Samsung Australia sales rose from $2.7billion in 2020 to $2.961 billion in 2021 despite COVID and supply problems.
During the period, the business increased advertising and marketing expenditure to $37M up from $35M they spent in the prior year. Warranty expenses also fell to $59M from $79M in 2020 when the business was still recalling faulty washing machines.
Employee benefit obligations rose significantly from $4.24M in 2020 to $8.1M in 2021 as the business moved to hold onto staff.
Globally the Company is expected to announce a (A$16.1 billion) operating profit for the April-June period, up 15.6 percent from a year ago, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Samsung’s Q2 sales are estimated to increase by 20.6 percent to 76.8 trillion won with Samsung’s chip business forecast to have grown 42 percent in the quarter.
The Company benefitted from an increase in demand of global shipments of DRAM and NAND Flash both growing in the three months ending in June by 9 percent and 2 percent on-year, respectively.
The Korean Herald reports that Samsung’s smartphone shipments are estimated to come in at 61 million units in the second quarter, a 16 percent drop from the previous quarter.
Operating profit of the division is likely to drop 600 billion won from last year to 2.6 trillion won.
Sales of home appliances are also down due in part to weaker consumer spending, rising costs of raw materials and supply problems.
Operating profit of the division is forecast to be around 500 billion won, less than half the figure from a year ago.
The display panel business is also likely to report weaker performances on slower demand, with the second quarter operating profits forecast to decline by 300 billion won from a year ago to 1 trillion won.
Analysts are painting a bleak picture for the second half, as the ongoing war in Ukraine, rising inflation and China’s COVID-19 lockdowns are dragging down demand for, and consumer spending on, electronic devices.
“A perfect storm of geopolitics upheaval, high inflation, currency fluctuations and supply chain disruptions have lowered business and consumer demand for devices across the world and is set to impact the PC market and the hardest in 2022,” Ranjit Atwal, senior director analyst at Gartner, said.
Samsung will announce its earnings guidance for the second quarter on Thursday.