Samsung Electronics has posted an operating profit of KRW6.45 trillion ($5.2 billion) during the first quarter (Q1) of the year, marking a rise of three per cent as compared to operating profit of KRW6.25 trillion in Q1 2019.

Total revenue was KRW55.33 trillion, a decrease of 7.6 per cent from the previous quarter mainly due to weak seasonality for the Company’s display business and Consumer Electronics Division and partially due to effects of COVID-19. From a year earlier, revenue rose 5.6 per cent due to increasing demand for server and mobile components.

Earnings from the Memory Business improved as demand was solid mainly from servers and PCs, while demand from mobile remained steady. Profits from the logic chip business rose as supply of mobile components increased to major customers and the foundry business saw a profit decline due to lower demand for high-performance computing (HPC) from China.

Sales and profits of set products business, including smartphones and TVs, are expected to decline significantly as Covid-19 affects demand and leads to store and plant closures globally. To address this, the Company will leverage its global production flexibility and supply networks as well as strengthening its online sales capabilities.

The Mobile Communications Business aims to strengthen its product line-up by introducing new premium models and expanding offerings of 5G models for the mass market. The Networks Business will focus on developing technologies and enhancing global competitiveness to reinforce the 5G business, a Samsung statement said.

 For the Consumer Electronics Division, under the risk of current economic uncertainties, Samsung said it will closely monitor the market situation and will continue to focus on minimizing negative impacts by investing in efficient marketing and promotions tailored to each region and by optimizing its logistics. – TradeArabia News Service