Samsung Q3 Profit Drops; Approves Appointment Of Jay Lee As Executive Chairman
Samsung Electronics Co Ltd (SMSN.L,SSNNF.OB,SSNLF.OB) reported a profit for the third-quarter that decreased 24.16 percent from the previous year. But quarterly sales rose 3.79 percent from the prior year.
The company said that its board approved the appointment of Jay Lee as Executive Chairman of the company. The appointment was recommended by Independent Director and Board Chairman Han-Jo Kim.
The Board cited the current uncertain global business environment and the pressing need for stronger accountability and business stability in approving the recommendation.
The company expects annual revenue to surpass the historical high set in 2021.
Looking ahead to the fourth quarter, market demand for smartphones and wearables is forecast to increase from previous quarter due to year-end seasonality despite ongoing geopolitical issues and macroeconomic instability.
Samsung aims to sustain strong sales of flagship products, including foldable devices and S22 series, and expand sales of Galaxy Ecosystem devices such as tablets and wearables.
Looking ahead to 2023, overall TV demand is expected to remain stagnant, while demand for premium products including super-big TVs will continue to grow.
In the Memory Business, after a dampened first half, demand is expected to rebound centering on servers as data center installations resume. The Company plans to align its supply strategy with the mid-term market outlook, taking into account the limited overall production in the industry.
Looking to the fourth quarter, the company aims to deliver bit growth that exceeds the market for both DRAM and NAND by actively addressing demand, focusing on high-density and high-performance products, in line with the needs of its customers.
The South Korean electronics giant reported that its net income attributable to the shareholders of the parent company for the third-quarter declined 24.16 percent to 9.14 trillion Korean won from 12.06 trillion won in the same quarter last year.
Operating profit for the quarter also declined 31.39 percent to 10.85 trillion won from the previous year.
But quarterly sales were 76.78 trillion won, a 3.79 percent increase from a year earlier.
The Semiconductor businesses posted 23.02 trillion won in consolidated revenue and 5.12 trillion won in operating profit in the third quarter.
The Visual Display and Digital Appliances businesses posted 14.75 trillion won in consolidated revenue and 0.25 trillion won in operating profit in the third quarter.
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