Earnings Release 2Q 2003
21 Julho 2003 - 4:00AM
UK Regulatory
RNS Number:7494N
Samsung Electronics Co. Ld
19 July 2003
July 16, 2003
Earnings Release 2Q 2003
Samsung Electronics
Disclaimer
This report includes forward-looking statements which can generally be
identified by phrases such as Samsung Electronics (SEC) or its management
"believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or
other words or phrases of similar import.
Similarly, such statements that describe the company's business strategy,
outlook, objectives, plans, intentions or goals also are forward-looking
statements.
All such statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those in this material.
The financial results of 1H 2002 have been revised in accordance with the
changes in accounting practice that were adopted from Q1 of 2003.
The financial results for Q1 of 2003 have been prepared on an un-audited basis,
and may be subject to change during the independent auditing process.
Sales and Profits
(Unit : Trillion KRW) Q1 03 Growth (%) 1H 03 1H 02
Q2 03
Sales 9.84 9.60 2.5% 19.44 19.44
Domestic 2.33 2.15 8.1% 4.48 5.73
Export 7.51 7.45 0.9% 14.96 13.71
Profit
Operating Profit 1.16 1.35 -14.2% 2.51 4.05
Net Profit 1.13 1.13 0.2% 2.26 3.82
Q2 Results Analysis (Q-on-Q)
Memory
* Sales Increased (2% up), but Profits Declined
* Blended DRAM ASP Slightly Declined
- 03.1Q Low $6 -> 03.2Q slightly below $6 (256M Eq.)
- DDR ASPs increased from mid-May
* Flash Volume and Sales Increased (% of Memory Sales)
- 20% (03.1Q) -> 25% (03.2Q)
* Shrink Technology (Wafer-in)
- April : < 0.11(S)- 13%
- July : < 0.11(S)- 42%
* DDR400 Market Growth
- Market expansion expected in 2H
* New PCs w/ DDR400 (3Q 20% -> 4Q 40%)
- Sustained premium on DDR 400
LCD
* Sales (42% up ) & Profit Improved : Growing Shipment and Stable ASP
- Large panel shipment : 4.4Mil. (33% up)
* Notebook Panel
Shipment : 40% up (1Q 1.5 Mil -> 2Q 2.1 Mil)
ASP (15inch) : $10 up (Mar. $190 -> June $200)
* 5G Line : Successful Ramp-up
- Line5(1,100x1,250): 03 Apr. 55K -> June 85K
* Line6(1,100x1,300): 03 Dec. 5K -> 04 Mar. 30K -> Jun. 60K
System LSI
* Sales and Profit Decreased
- Contracted Chinese market and production
- Inventory adjustment by handset makers
Telecommunication
* Handsets : Revenue Declined (8% down)
- Shipments: Decreased to 12M (9% down)
* Flat compared to Q1 excluding India CDMA
* GSM shipment increased (15% up)
* Domestic market recovery since May
(consumers gave up on expected subsidies)
- ASP: Slightly increased overall
* Export 3% up, Domestic 6% down
* Network : Revenue Increased (33% up)
- Supplied cdma2000 1x to Indonesias Mobile 8
& additional EV-DO systems to Japans KDDI
- Selected as a main provider of SKIMT
W-CDMA system (Metro area)
Digital Media
* Sales Declined (1% down), Profits Declined
- Slow seasonal demand & domestic economy
- Fierce M/S competition in domestic market
* Progress by Product
- TV : Strong digital TV sales (14% up)
- Monitor : Expanded LCD Portion (35%)
- PC : Increased exports (27% up)
- Printer : Laser printer sales improved (12% up)
Home Appliances
* Sales Increased by 22% but Profits Declined
- Air Conditioner sales increased by 36%
(Q1 206 Bn. Won -> Q2 314 Bn. Won)
- Higher marketing / R&D expenses, ASP down
Sales by Division
(Unit : Trillion KRW) Q2 03 (Weight) Q1 03 (Weight) Growth (%)
Semiconductor 3.76 (38%) 3.52 (37%) 6.8%
Memory 1.83 (18.6%) 1.79 (18.7%) 1.8%
TFT-LCD 1.09 (11.1%) 0.77 (8.0%) 42.0%
System LSI 0.43 (4.4%) 0.45 (4.7%) -4.4%
Telecommunication 3.18 (32%) 3.33 (35%) -4.6%
Wireless Handsets 2.79 (28.4%) 3.04 (31.7%) -8.2%
Digital Media 1.85 (19%) 1.87 (20%) -1.3%
Home Appliances 0.97 (10%) 0.80 (8%) 21.9%
Total 9.84 (100%) 9.60 (100%) 2.5%
Operating Profit by Division
(Unit: Trillion KRW) Q2 03 (Profit Margin) Q1 03 (Profit Margin) (Margin Chamge)
Semiconductor 0.57 15.0% 0.57 16.0% - 1.0% point
Telecommunication 0.55 17.3% 0.68 20.4% - 3.1% point
Digital Media 0.04 2.1% 0.10 5.4% -3.3% point
Home Appliances 0.003 0.3% 0.01 1.0% -0.7% point
Total 1.16 11.8% 1.35 14.1% -2.3% point
Financial Analysis
(Unit: Trillion KRW) End of Jun. 03 End of Mar. 03 Change
Assets 33.83 33.88 -0.05
Liabilities 7.78 8.69 - 0.91
(Debt) (1.16) (1.89) (-0.73)
Shareholders' Equity 26.05 25.19 0.86
(Paid-in Capital) (0.89) (0.89) No Change
Debt / Equity Ratio 4.5% 7.5% -3% point
Net Debt / Equity Ratio - 15% - 13% -2% point
Q2 03 Q1 03 Change
R O E* 17.6% 18.2% - 0.6% point
Profitability (Net Income/ Sales) 0.12 0.12 - 0.003
Asset Turnover (Sales / Asset) 1.16 1.12 0.04
Leverage (Asset / Equity) 1.32 1.38 - 0.06
* Annualized
Profitability Analysis
(Unit: Trillion KRW) Q2 03 Q1 03 Growth (Change) 1H 03 1H 02
Sales 9.84 9.60 2.5% 19.44 19.44
Gross Profit 2.82 2.85 - 1.3% 5.67 6.74
(%) (29%) (30%) (- 1% point) (29%) (35%)
SG & A 1.65 1.50 10.3% 3.16 2.69
(%) (17%) (16%) (1% point) (16%) (14%)
Operating Profit 1.16 1.35 - 14.2% 2.51 4.05
(%) (12%) (14%) (-2% point) (13%) (21%)
Net Profit 1.13 1.13 0.2% 2.26 3.82
(%) (12%) (12%) (No change) (12%) (20%)
Cash Flow
(Unit: Trillion KRW) Until June 2003 Until Mar 2003
Cash* (Beginning of period) 5.29 7.42
Cashflow from Operation 2.34 0.72
Net Profit 1.13 1.13
Depreciation 0.91 0.83
Loss from Equity method 0.06 0.03
Increase in Working Capital 0.24 (1.27)
(Inventory, A/R, Accrued Expenses)
Cashflow from Investment (1.50) (1.96)
CAPEX (1.39) (2.03)
Cashflow from Financing (1.16) (0.89)
Decrease in Debt 0.71 0.53
Dividends - (0.83)
Repurchase of Shares (0.35) (0.64)
Net decrease in cash 0.32 2.13
Cash (End of period) 4.97 5.29
* Cash = cash + cash equivalent + short-term financial instruments + marketable
securities
Year 2003 Forecast
(Unit: Trillion KRW) 03 Plan 1H 03 1Q 03 FY2002
Semiconductor 5.77 3.17 1.92 3.60
Memory 3.29 2.15 1.51 2.03
TFT-LCD 1.64 0.74 0.29 1.41
System LSI 0.84 0.28 0.12 0.16
Telecom 0.32 0.09 0.03 0.27
Digital Media & etc. 0.69 0.16 0.08 0.32
Total 6.78 3.42 2.03 4.19
This information is provided by RNS
The company news service from the London Stock Exchange
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