Samsung Electronics today announced revenues of KRW 36.99 trillion (US$34.66 billion) on a consolidated basis for the first quarter ended March 31, 2011, a 7% increase year-on-year.

For the quarter, the company posted consolidated net income of KRW2.78 trillion, representing a 30% decrease year-on-year. Consolidated operating profit for the quarter was KRW2.95 trillion.

In its earnings guidance disclosed on April 7, Samsung estimated first-quarter consolidated revenues would reach approximately KRW37 trillion with an operating profit of KRW2.9 trillion.

By business, Telecom, Semiconductor and Digital Media & Appliances drove revenue growth in the quarter. The Semiconductor Business saw sales jump 12% year-on-year thanks to stronger demand for NAND products used in smartphones and tablet PCs, while the Telecom segment continued to perform strongly with sales reaching KRW10.64 trillion.

However, Samsung's overall net profit declined after the strong first quarter performance in 2010, weighed down by lower semiconductor memory prices and reduced profitability in LCD panels and TV sets.

"A difficult business environment remained in the first quarter, due to rising costs of raw materials, uncertainties in the financial market in Europe, and the devastating earthquake in Japan," said Robert Yi, vice president and head of Samsung Electronics' Investor Relations Team. "But we will actively respond to such challenges by enhancing cost competitiveness in memory products through geometry migration, launching new smartphones and tablet PCs, as well as increasing the sales focus on premium LCD panels and TVs."

Samsung forecasts that the challenging business conditions will persist in the second quarter, affected by lingering worries over the global economy and tight competition in consumer electronics and mobile businesses.

By: DocMemory
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