October 17, 2003 in Social Responsibility News

SAMSUNG Electronics Announces Another Strong Quarter

SEOUL, Korea - October 17th, 2003: SAMSUNG Electronics has announced its revenue for the third quarter exceeded 11 trillion won. Operating income increased by 77% quarter on quarter to reach 2.05 trillion won, and net income was 1.84 trillion won for the quarter.

This strong performance is noteworthy because it was achieved despite such negative variables as plummeting dollar value, soaring oil prices, and faltering domestic consumption.

Three of SAMSUNG Electronics' four main business units-the Device Solution (DS) Network, Telecommunication (TN) Network, and Digital Media (DM) Network--achieved respective QonQ revenue increases of 26.5%, 17.7%, and 1.2% for quarterly performance totals of 4.76, 3.74, and 1.87 trillion won respectively. The Digital Appliance (DA) Network Business saw sales drop 20.8% from the second quarter recording 770 billion won, mainly because of a seasonal decline in its main products.

Third quarter operating income for the four businesses were DS 1.35 trillion, TN 750 billion, DM 2 billion, and DA - 50 billion won respectively.

Importantly, SAMSUNG’s three mainstay divisions-memory chips, mobile phones, and TFT LCDs--all set new quarterly revenue records.

Revenue for the memory division grew by 40% to 2.55 trillion Korean won, thanks mainly to an explosive increase in flash memory sales. Operating income is even more impressive at 1.35 trillion won, up 139.1% from the previous quarter, and operating margin is 28.4%. These unprecedented figures show SAMSUNG is well on its way to realize its recently announced goal of becoming the number one flash memory maker by 2004.

The Telecommunication Network Business, which includes the mobile phone division, also had a very robust quarter with 17.7% revenue growth to total 3.74 trillion won. Operating income and margin also increased by 35.6% and 2.6%. The strong demand for high-end handsets with color screens, cameras and camcorder functions drove unit sales up by 25%, or 15 million units, over the second quarter.

Sales for the TFT LCD division, which is often dubbed the next-generation driver of the IT industry, increased by 26%, reaching 1.4 trillion Korean won.

The Digital Media and Digital Appliance businesses had a relatively weak quarter due to a slumping domestic market and seasonal decrease in demand. However, performance is expected to improve as demand for digital TVs and other products increases.

The outstanding overall performance by SAMSUNG Electronics can be attributed to sustained investment in R&D and brand marketing. The strong third quarter earnings report has reaffirmed SAMSUNG Electronics’ position as a top-tier global player.

The company boasts a sound financial structure as the cash reserve still exceeds 7 trillion won even after the continued capital expenditures. Additionally, the net borrowings-to-equity ratio was -21% and ROE 27% at quarter’s end.

SAMSUNG, displaying confidence in its future, announced a 2003 capital expenditure plan that exceeded 7 trillion won for the first time in its history.

About SAMSUNG Electronics
SAMSUNG Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, and digital convergence technology. SAMSUNG Electronics employs approximately 75,000 people in 87 offices in 45 countries. The company is the world's largest producer of memory chips, TFT-LCDs, CDMA mobile phones, monitors and VCRs. SAMSUNG Electronics consists of four main business units: Digital Media Network, Device Solution Network, Telecommunication Network and Digital Appliance Network Businesses. For more information, please visit http:// www.samsungelectronics.com


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