The South Korean company registered first quarter revenue of $59bn
Samsung Electronics has reported an operating profit of KRW9.38 trillion ($8.5bn) for the first quarter of 2021, a 4% increase compared to KRW9.05 trillion ($8.2bn) in the previous three-month period (Q4 2020).
The South Korean company said that its performance in the reported quarter was driven by strong sales of smartphones and consumer electronics. These offset the lower earnings reported from semiconductors and displays, said the company.
Samsung’s total consolidated revenue for the quarter that ended 31 March 2021 was KRW65.39 trillion ($59bn), which is an increase of 6% compared to the previous quarter’s revenue of KRW61.55 trillion ($56bn).
The semiconductor business of the company registered consolidated revenue of KRW19.01 trillion ($17bn) in the reported quarter compared to KRW18.18 trillion ($16bn) in Q4 2020.
The unit’s operating profit was KRW3.37 trillion ($3bn) in the reported quarter compared to the operating profit of KRW3.85 trillion ($3.5bn) in the previous quarter.
Samsung’s display panel business reported consolidated revenue of KRW6.92 trillion ($6.2bn) in Q1 2021, while its operating profit was KRW0.36 trillion ($320m).
Samsung stated: “The semiconductor business saw an earnings decline quarter-on-quarter (QoQ) despite solid memory shipments, mainly due to the production disruption at the Austin fab, and a downward trend in NAND prices, while initial costs of new line ramp-up associated with advanced node migration also weighed on the results.
“Profit from the Display Panel Business fell quarter-on-quarter because of weak seasonality of mobile products.”
The company’s consumer electronics division registered KRW12.99 trillion ($12bn) in consolidated revenue for the reported quarter, while the operating profit was KRW1.12 trillion ($1bn).
On the other hand, the IT and mobile communications division of Samsung had consolidated revenue of KRW29.21 trillion ($26bn) in Q1 2021. The operating profit during this period was KRW4.39 trillion ($4bn).
Last month, the South Korean firm outlined plans for constructing a semiconductor facility in Austin, Texas with an investment of $17bn under Project Silicon Silver.