[Infostock Daily= Reporter Lee Dong-hee] Samsung Electronics has released provisional results that exceed market forecasts in the crisis caused by the new coronavirus infection (Corona 19 or COVID-19).
Samsung Electronics announced on the 7th that consolidated sales in the first quarter of this year were 55 trillion won and operating profit was 6.4 trillion won.
Compared to the first quarter of a year ago, sales and operating profit increased by 4.98% and 2.73%, respectively. However, sales and operating profit decreased by 8.15%, and 10.61% compared to the fourth quarter of last year.
The operating margin, which is the operating profit ratio to sales, was 11.6%, the lowest since the third quarter of 2016.
The first quarter results are relatively good compared to the fact that securities firms lowered Samsung Electronics' forecasts due to the spread of Corona 19.
Samsung Electronics' 1Q earnings forecast for three securities firms was about 54.7 trillion won in sales and 6.23 trillion won in operating profit.
Samsung Electronics did not disclose its earnings by sector on the same day, but the semiconductor division performed well and the smartphone division, which was expected to be sluggish, was also better than expected.
Experts estimate that the operating profit of the semiconductor division will be 3.7 trillion won, and the operating profit of the smartphone division will be 2 trillion won.
Samsung Electronics is worried about earnings deterioration in 2Q, when the Corona 19 situation expanded worldwide.
Experts predict that earnings will deteriorate in the second quarter due to the shutdown of global production bases and the suspension of consumer electronics distribution networks in North America and Europe.
Reporter Lee Dong-hee nice1220@infostock.co.kr
