Samsung Electronics Co.’s second-quarter earnings remained steady compared to three months before, with robust memory chip sales for data center servers offsetting softer demand for personal computers and mobile gadgets.
The semiconductor division was the only one among Samsung’s five segments that saw a year-on-year growth in operating profit. Its operating profit surged 44% on-year to 10 trillion won ($7.7 billion), accounting for 41% of the company’s quarterly operating profit as a whole.
The world’s largest memory chipmaker on Thursday reported a 14.1 trillion won ($12 billion) operating profit for the April-June quarter, little changed from the first quarter’s 14.12 trillion won.
Quarterly revenue came in at 77.2 trillion won versus 77.78 trillion in the first quarter. But it reversed its record-setting revenue growth of the previous three quarters, hit by declining sales of smartphones and home appliances.
Year-on-year, operating profit leapt 12.18%, with sales up 21.25%.
SEMICONDUCTOR DIVISION
Foreign exchange gains further boosted the second-quarter sales of semiconductor chips to a record high. The weaker won boosted translation gains from overseas sales.
By contrast, sales of smartphones, TVs and home appliances decreased by one-third to 360 billion won in aggregate from the year previous. Three other segments, including displays and mobile networks, posted a slight on-year decline in operating profit.
The Russia-Ukraine war and an economic slowdown slammed consumer goods segments, which is likely to leave Samsung’s second-half smartphone sales little changed or slightly lower on-year.
“Particularly, we took a hit from a steeper-than-expected demand fall for mobile products,” a Samsung executive told a second-quarter conference call.
“NAND Flash, used mainly in consumer goods, showed a noticeable decline, compared with DRAM chips.”
But memory chips for data center servers are expected to prop up its semiconductor division on the back of growing demand for both in-house servers and public clouds.
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