Samsung's Q3 Semiconductor Loss Narrows by 600 Billion Won... Contributing to Trillion-Won Operating Profit Recovery (Update)

Q3 Revenue 67.4 Trillion KRW
Operating Profit 2.43 Trillion KRW

Samsung Electronics reduced the semiconductor (DS) division's operating loss to the 3 trillion won level and recovered overall 'trillion-won' operating profit in the confirmed Q3 results announced a day before its founding anniversary (November 1).

On the 31st, Samsung Electronics announced its Q3 2023 (July-September) results on a consolidated basis, with sales of 67.4 trillion won and operating profit of 2.43 trillion won. Sales and operating profit decreased by 12.21% and 77.57%, respectively, compared to the same period last year. As a result, cumulative sales for the first three quarters of this year amounted to 191.1556 trillion won, down 17.52% from the same period last year, and operating profit fell 90.42% to 3.7423 trillion won.

Although the performance shrank significantly compared to the same period last year, the 'trillion-won' operating profit in Q3 shows a recovery compared to the first and second quarters of this year, when the semiconductor market downturn resulted in operating profits of around 600 billion won each.

The semiconductor deficit narrowed slightly from 4.58 trillion won in Q1 and 4.36 trillion won in Q2 to 3.75 trillion won in Q3, a reduction of 610 billion won, contributing to the performance recovery. This is due to the price increase effect from memory semiconductor production cuts, as well as expanded sales of high-value-added products such as Double Data Rate (DDR) 5 and High Bandwidth Memory (HBM) 3.

The Device Experience (DX) division, which includes mobile and home appliances, posted sales of 44.02 trillion won and operating profit of 3.73 trillion won. In particular, the mobile segment benefited from the new Galaxy smartphone models, generating 3.3 trillion won in profit. The Display (SDC) division achieved operating profit of 1.94 trillion won, doubling the Q2 figure of 840 billion won, and the automotive affiliate Harman also recorded a record quarterly operating profit of 450 billion won.

Samsung Electronics stated that it plans to invest a total of 53.7 trillion won in facilities this year, including 47.5 trillion won for semiconductors and 3.1 trillion won for displays, marking the largest annual facility investment ever. It also decided on a cash dividend of 361 won per share. The payment date is scheduled for the 20th of next month, with total dividends amounting to 2.4521 trillion won.

This content was produced with the assistance of AI translation services.