Earnings Release 3Q 2003
17 Outubro 2003 - 7:38AM
UK Regulatory
RNS Number:0173R
Samsung Electronics Co. Ld
17 October 2003
October 17, 2003
Earnings Release 3Q 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 for 3Q 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) Q3 03 Q2 03 Growth
Sales 11.26 9.84 14.5%
Domestic 2.34 2.33 0.7%
Export 8.92 7.51 18.8%
(us$, Bn) 7.59 6.22 22.1%
Profit
Operating Profit 2.05 1.16 77.0%
Net Profit 1.84 1.13 62.8%
Q3 Results Analysis (Q-on-Q)
Memory
* Sales (40% up) & Profits Significantly Up
- Shipment increase of highly profitable Flash
*44 mil. --> 66 mil. 512M. Eq.
- Greater revenue contribution of Flash
*25% --> 32%
* DRAM Blended ASP
- 03.2Q Below $6 --> 03.3Q Low $6
- DDR ASPs increased due to seasonality and supply constraints
* Shrink Technology (Wafer-in)
- July : < 0.11 um 42%
- Oct. : < 0.11 um 67%
* 12" Ramp up
- Line 11 (MPS) : 10K/Month, DDR (0.10 um)
- Line 12 : 13K/Month, DDR (0.10 um), NAND (0.09 um)
LCD
* Sales ( 26% up) & Profits Improving : Growing Shipment and ASP
- Large panel shipment : 5.2Mil. (19% up)
*N/B panel shipment : 28% up (2.0 Mil --> 2.6 Mil)
*TV panel : Increasing revenue contribution of 20 inch +
(Q2 48% --> Q3 67%)
- Healthy pricing environment driven by N/B panel demand
*14.1 inch (June $178 --> Sep. $185)
5G Lines : Successful Ramp-up
- Line5 : Full Capacity (100K) in Aug.
- Line6 : Ramp-up in Oct.
System LSI
Sales ( 3% up) & Profits Improved
- Display Driver IC (DDI) revenue : (22% up)
- CMOS Image Sensor (CIS) revenue : (57% up)
- SOC revenue : (12% up)
Telecommunication
- Sales (18% up) & Profits (36% up)
Handsets
- Shipments: Increased to 15M unit (25%)
*Seasonality and new models launch
*Increased shipment in GSM (30%)
- ASP : Increased Export & Domestic (3%)
*Product mix improvement (Color, Camera) --> Increased operating
margin
Network
- Supply of W-CDMA system to SKIMT : Metro area
- Additional shipment of EV-DO systems to Japan KDDI &
cdma2000 1x to Indonesias Mobile 8
Digital Media
Sales (1% up) but Profits Declined
- Increased overseas production: 02 : 70% --> 03 3Q : 82%
Progress by Product
- TV : Strong digital TV sales (34% up)
- Monitor : Growing 17 inch LCD (23% up)
- PC : Increased exports of N/PC (7% up)
- Printer : Improved sales of Laser printers (27% up)
- DVD : Greater COMBO contribution (40% up)
Home Appliances
Sales (21% down) due to Seasonality
- Greater overseas production for cost reduction
*Overseas production for major products (02 : 53% --> 03 : 68%)
Sales by Division
(Unit : Trillion KRW) Q3 03 (Weight) Q2 03 (Weight) Growth
Semiconductor 4.76 (42.0%) 3.76 (38.0%) 26.5%
Memory 2.55 (22.6%) 1.83 (18.6%) 39.7%
TFT-LCD 1.38 (12.2%) 1.09 (11.1%) 26.1%
System LSI 0.44 (3.9%) 0.43 (4.4%) 2.5%
Telecommunication 3.74 (33.0%) 3.18 (32.0%) 17.7%
Wireless Handsets 3.41 (30.3%) 2.79 (28.4%) 22.3%
Digital Media 1.87 (17.0%) 1.85 (19.0%) 1.2%
Home Appliances 0.77 (7.0%) 0.97 (10.0%) - 20.8%
Total 11.26 (100%) 9.84 (100%) 14.5%
Operating Profit by Division
(Unit: Trillion KRW) Q3 03 (Profit Q2 03 (Profit (Margin
Margin) Margin) Chamge)
Semiconductor 1.35 28.4% 0.57 15.0% 139.1% point
Telecommunication 0.75 19.9% 0.55 17.3% 35.6% point
Digital Media 0.002 0.1% 0.04 2.1% - 95.2% point
Home Appliances - 0.05 -6.0% 0.003 0.3% - 1,500% point
Total 2.05 18.2% 1.16 11.8% 77.0% point
Financial Analysis
(Unit: Trillion KRW) End of Sept. 03 End of June. 03 Change
Assets 36.39 33.83 2.56
Liabilities 8.50 7.78 0.72
(Debt) (1.16) (1.16) No Change
Shareholders Equity 27.89 26.05 1.84
(Paid-in Capital) (0.89) (0.89) No Change
Net Debt / Equity Ratio -21% -15% - 6% point
Q3 03 Q2 03 Change
R O E* 27.3% 17.6% 9.7% point
Profitability (Net 0.16 0.12 0.04
Income/ Sales)
Asset Turnover (Sales / 1.28 1.16 0.12
Asset)
Leverage (Asset /Equity) 1.30 1.32 - 0.02
* Annualized
Profitability Analysis
(Unit: Trillion KRW) Q3 03 Q2 03 Growth (Change)
Sales 11.26 9.84 14.5%
Gross Profit 3.65 2.82 29.8%
(%) (33%) (29%) (4% point)
SG & A 1.60 1.65 -3.3%
(%) (14%) (17%) (- 3% point)
Operating Profit 2.05 1.16 77.0%
(%) (18%) (12%) (6% point)
Net Profit 1.84 1.13 62.8%
(%) (16%) (12%) (4% point)
Cash Flow
(Unit: Trillion KRW) Q3 03 Q2 03
Cash* (Beginning of period) 4.97 5.29
Cashflow from Operation 3.46 2.34
Net Profit 1.84 1.13
Depreciation 0.97 0.91
Loss from Equity method 0.04 0.06
Increase in Working Capital 0.61 0.24
(Inventory, A/R, Accrued Expenses)
Cashflow from Investment (1.36) (1.50)
CAPEX (1.42) (1.39)
Cashflow from Financing (0.002) (1.16)
Decrease in Debt - 0.71
Dividends (0.08) -
Repurchase of Shares - (0.35)
Net decrease in cash 2.10 (0.32)
Cash (End of period) 7.07 4.97
* Cash = cash + cash equivalent + short-term financial instruments +
marketable securities
Capex Plan
(Unit: Trillion KRW) FY03 Plan Original Change
Semiconductor 6.27 5.77 0.50
Memory 3.64 3.29 0.35
TFT-LCD 2.01 1.64 0.37
System LSI 0.58 0.84 - 0.26
Telecom 0.28 0.32 - 0.04
Digital Media & etc. 0.48 0.69 - 0.21
Total 7.03 6.78 0.25
Capex Plan
(Unit: Trillion KRW) FY03 Plan Q3 03 FY2002
Semiconductor 6.27 4.44 3.60
Memory 3.64 2.66 2.03
TFT-LCD 2.01 1.41 1.41
System LSI 0.58 0.35 0.16
Telecom 0.28 0.19 0.27
Digital Media & etc. 0.48 0.21 0.32
Total 7.03 4.84 4.19
This information is provided by RNS
The company news service from the London Stock Exchange
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