Published October 10, 2022

Samsung Electronicsが先週発表した業績予想によると、同社の2022年第3四半期 (Q3’22) の収益は前期よりわずかに減少、営業利益は大幅に減少する見通しだという。一方、LG Electronicsは、現地通貨ベースで収益と営業利益がともに前年同期より大幅に増加する見通しを報告している。両社の収益は米ドルに換算すると前年比で減少となるが、これは韓国ウォンがQ2’22と比較して6%、Q3’21と比較して16%下落したためである。

SamsungはQ3’22の収益76兆ウォン (567億ドル) と営業利益10.8兆ウォン (81億ドル) を暫定値として発表した。収益はウォンベースでは前期比2%減、前年比3%増だが、米ドル換算では前期比7%減、前年比11%減となる。営業利益はウォンベースで前期比23%減、前年比32%減となるが、米ドル換算では前期比28%減、前年比41%減で減少幅がさらに大きくなる。収益はコンセンサス予想の78.7兆ウォンを下回り、営業利益もコンセンサス予想の12.4兆ウォンを下回っている。これらのコンセンサス予想も、メモリチップ価格下落のニュースを理由に今四半期初め以降に下方修正されたものだった。

Samsung Earnings Slumped in Q3 But LG Managed Y/Y Gain

Samsung Electronics’ revenues for Q3’22 edged down on a sequential basis, but its operating profits dropped sharply, according to its earnings guidance released last week. Meanwhile, LG Electronics reported strong Y/Y gains in both revenues and operating profits in local currency for the quarter. For both companies, revenues fell on a Y/Y basis when translated into US dollars since the Korean won depreciated 6% compared to Q2’22 and 16% compared to Q3’21.

Samsung announced preliminary Q3’22 revenues of KRW 76T won ($56.7B) and operating profits of KRW 10.8T ($8.1B). Revenues decreased 2% Q/Q but increased 3% Y/Y in KRW terms but revenues translated into US$ terms, declined 7% Q/Q and declined 11% Y/Y. Operating profits decreased 23% Q/Q and 32% Y/Y in KRW terms and the declines were even greater in US$ terms at 28% and 41%, respectively. Revenues fell short of consensus expectations of KRW 78.7T and operating profits fell short of consensus expectations of KRW 12.4T. Even those consensus expectations had been revised down since the beginning of the quarter on news of declining prices for memory chips.

Samsung Electronics Income Statement Highlights, 3Q’20 to 3Q’22

Source: Samsung Electronics Financial Statements, DSCC Analysis

The reduced operating profits represent clear sign of a downturn in Samsung’s Semiconductor business, which accounted for 60% of the company’s operating profits in Q1’22. That business benefited greatly from the semiconductor shortage during the pandemic as memory chip prices spiked, but that shortage has eased and prices have started to fall.

Samsung’s display business is expected to show improvement Q/Q. In Q3’21, Samsung Display posted an operating profit of KRW 1.5T on revenues of KRW 8.9T. Samsung’s mobile OLED business managed a +19% operating profit margin while its larger screen business posted an operating loss of KRW 107B for an operating margin of -31%. Q3’22 will be the first quarter for SDC after shutting down its last LCD line, so the larger screen business will be based entirely on its QD-OLED panels.

According to DSCC’s Quarterly OLED Shipment Report, Samsung Display shipped 114M smartphone displays in Q3’22, a decrease of 4% Y/Y but an increase of 31% Q/Q. Smartphone panel revenues increased 32% Q/Q but decreased 8% Y/Y. Shipments of OLED notebook panels more than doubled Y/Y and shipments of OLED panels for game systems increased by 38%. Finally, SDC shipped an estimated 225K of QD-OLED TV panels and 54K of QD-OLED monitor panels in the third quarter, compared to zero in the prior year.

Samsung’s crosstown rival LG Electronics reported KRW 21.2T ($15.8B) in revenues for the quarter, an increase of 9% Q/Q and 13% Y/Y. Operating profits for Q2 were KRW 0.75T ($0.6B), a decrease of 6% Q/Q but an increase of 38% Y/Y. LG terminated production and sales of solar panel at the end of June this year and is treating the performance of solar business as a discontinued operating loss, so on the basis of continuing business, LG’s revenues increased 14% Y/Y and operating profits increased 25% Y/Y.

LG Electronics Income Statement Highlights, 3Q’20 to 3Q’22

Source: LG Electronics Financial Statements, DSCC Analysis

Both Samsung and LG will report their full financial results for Q3 at the end of October.

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Written by

Bob O'Brien