(3rd LD) Samsung Electronics’ first-quarter profit jumps 50.5 percent, driven by server chips, mobile sales

(WARNING: ADD Samsung’s inventory worth on the backside)
By Woo Jae Yeon

SEOUL, April 28 (Yonhap) — Samsung Electronics Co. on Thursday reported its finest first-quarter earnings in 4 years, due to stable demand for chips and cellphones.

The world’s greatest maker of reminiscence chips and cell telephones mentioned its working revenue rose greater than 50 % to 14.1 trillion gained ($11.1 billion) yr on yr, in a regulatory submitting.

Its January-March working revenue topped a market consensus of 13.2 trillion gained from a survey by Yonhap Infomax, the monetary arm of Yonhap Information Company.

Web revenue jumped 58.5% year-on-year to 1.13 trillion gained.

Gross sales rose 18.9% on the yr to 77.7 trillion gained within the first quarter, an all-time quarterly report and the third consecutive quarter the tech big has reported greater than 70 trillion gained in quarterly gross sales.

Samsung’s reminiscence enterprise reported 26.87 trillion gained in gross sales from January to March, a report quarterly gross sales. The business gained 8.45 trillion gained in working revenue, about 60% of third-quarter revenue.

The value of reminiscence has dropped lower than beforehand anticipated, due to stable demand for chips utilized in servers and PCs, Samsung mentioned.

Robust demand is anticipated to proceed within the second half as “International firms and cloud service suppliers are growing their infrastructure investments as they transfer into new progress areas resembling synthetic intelligence and machine studying,” Han Jin-man , govt vice chairman and head of worldwide reminiscence gross sales and advertising and marketing, throughout a Thursday morning earnings name.

Its foundry enterprise, or contract chip manufacturing, achieved all-time gross sales within the first quarter as demand was stable from all purposes and superior course of yields improved.

Kang Moon-soo, senior vice chairman and head of Samsung’s foundry technique and market group, mentioned the foundry enterprise will proceed to enhance within the coming years.

“When you have a look at our order e book for the following five-year interval, the (whole) orders are about eight occasions the earlier yr’s income,” he mentioned.

Whereas gear supply occasions have elevated as a result of disruption to world provide chains, inflicting issues, he mentioned the corporate was responding to the difficulty by “holding our gear investments flexibly in keeping with the business scenario.”

The cell and community companies reported 32.37 trillion gained in gross sales and three.82 trillion gained in working revenue.

The cell enterprise noticed progress when it comes to gross sales and profitability from the earlier quarter, due to the success of its newest Galaxy S22 sequence launched in late February, Samsung mentioned.

The tech big had anticipated its telephone enterprise to stay stable within the coming months, with the anticipated launch of latest foldable smartphones.

“We’re at present engaged on making ready the brand new foldable mannequin scheduled for launch within the second half of the yr,” mentioned Kim Sung-koo, vice chairman of cell enterprise at Samsung.

The corporate goals to make its foldable smartphone sequence one other “high pillar subsequent to the Galaxy S sequence in our enterprise,” it added.

In the meantime, its TV enterprise shrank within the first quarter amid weak demand for TVs, brought on by geopolitical dangers involving Russia and Ukraine and the lifting of pandemic restrictions in lots of nations.

Regardless of the uncertainties in demand, Samsung mentioned it was seeing alternatives within the premium and ultra-wide-screen segments.

Within the show sector, enterprise has improved from a yr in the past, pushed by sturdy premium merchandise together with Neo QLED TVs, in accordance with the corporate. Its residence equipment enterprise posted report quarterly gross sales helped by premium BESPOKE merchandise.

Samsung mentioned it was winding down its liquid crystal show (LCD) enterprise, as beforehand introduced, to give attention to the extra worthwhile natural light-emitting diode (OLED) sector.

The tech big additionally mentioned its efficiency was partially helped by the weak Korean gained.

“US greenback power towards the Korean gained outweighed weak point in some rising currencies, resulting in a constructive impression of roughly 300 billion gained on working revenue in comparison with the earlier quarter,” the corporate mentioned.

Regardless of the sturdy efficiency, Samsung shares fell 0.31 % to shut at 64,800 gained, the bottom in about 17 months. The broader market rose 1.08 % to 2,667.49.

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