Samsung Electronics Co. Ltd., Asia's largest maker of flat screens, chips and mobile phones, reported on Friday revenues of $18 billion for the second quarter of 2008 ended June 31, 2008. The Suwon, South Korea-based company said operating profit and net income for the quarter were $1.9 billion, and $2.12 billion on a parent basis, increasing by 108 percent and 51 percent year-on-year respectively. Revenues and operating profits on a consolidated basis were $28.9 billion and $2.4 billion. Samsung demonstrated relatively solid performance thanks to its competitive LCD business and profitable memory business, overcoming challenging conditions including a global economic slowdown, sluggish demand in key markets, a surge in raw material prices, and increases in marketing expenses. “The second quarter has been extremely challenging due to stagnant demand and price drops in the memory market, along with growing price competition in the mobile and LCD TV markets,” said Dr. Woosik Chu, executive vice president of investor relations. “Amid these challenges, Samsung demonstrated its competitiveness by reaching an operating margin of 21 percent in our LCD business, upholding an operating margin of 13 percent in telecom, and maintaining profitability in our memory business.” The LCD business posted operating profit reached $992 million with a profit margin of 21 percent, while revenue grew nine percent quarter-on-quarter, reaching $4.67 billion on a parent basis. On a consolidated basis, its operating profits of $1.04 billion and revenues of $3.88 billion on a consolidated basis. Strong and stable customer bases, in particular major TV set makers, helped to drive steady growth in LCD revenues, despite weak seasonality and price decreases for LCD panels throughout the quarter. Large panel shipments increased to 25.4 million units, up 11 percent quarter-on-quarter, while TV panel shipments reached more than 5 million units. Steady demand in panels for notebook PCs also contributed to the business' favorable results. The second quarter operating profit of the semiconductor business was $267.84 million and quarterly revenue was $4.54 billion, increasing by 38 percent and 4 percent quarter-on-quarter respectively on a parent basis. __
