Q2 financial reports: Samsung, Motorola, and LG.
Wednesday, August 04, 2010
After the impressive start of the year, Samsung's growth slowed down a little during the second quarter of the year. Nevertheless, the financial report shows that the company is still doing quite fine as it sold good 63.8 million handsets which makes 22 percent more units than last year's second quarter and less than a 1 percent decrease when compared to Q1 2010.
In total Samsung earned some 6.81 billion US dollars, which is a 5% sales decrease Year-on-Year. As far as the operating profit of around 533 million US dollars is concerned, it marks a 3.6% decrease Year-on-Year.
The growth is slowing down a bit which is a result of the lowered average handset selling price and the European economy's slowdown. However, everything is said to change in the second half of the year as Samsung expects to sell about 20% more smartphones (such as the Android-running Samsung I9000 Galaxy S and the Bada-powered Samsung S8500 Wave), and this will increase the average selling price and should bring better financial results.
Moving to Motorola, it seems that they are just about at the end of the tunnel as their financial results are starting to get better and better.
Of course what interests us the most is Motorola mobile division, which managed to push 8.7 million handsets for the past three months. Those generated 1.7 billion dollars of revenue and 87 million dollars of profit.
The bad news is that some legal statement brought them 228 million dollars that certainly added for the positive financial result and it's unlikely that such a thing will happen again next quarter. So Motorola will need to keep up the hard work releasing more devices like the Motorola Droid X, which enjoyed a great reception in the US, and may be, by the time the mobile division gets separated it can continue to be in the black, relying on sales alone.
And going back to Korea, LG released their quarterly results for Q2 and they're doing well overall - except the mobile department where the net results are: 12.4 billion dollars in sales and operating profit of 108 million dollars. Net profit declined 26% compared to the same quarter of last year.
LG shipped 30.6 million phones this quarter, which is a 13% increase over the previous quarter. The income however only rose 5.8%. Compared to the same quarter of last year, that's 2% more phones sold but a 29.5% decline in income. LG related the falling operating profit margin with investments and costs to the company's expansion into new markets.
Other departments of LG had a strong quarter and offset the loss from the mobile division. As for the next quarter, they are expecting a "modest growth" and promise to "continue to introduce new products in major categories including smartphones".