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Samsung’s consumer electronics division might post healthy profit but components business may see loss in Q2

Market analysts are of the view that Samsung’s consumer electronics business is going to post robust operating profit of 1 trillion won ($870 million) in the second quarter of this year. This is going to be the first time since 2009 that the company’s consumer electronics division will see its operating income cross 1 trillion won. Analysts also expect the business to demonstrate strong performance in the second half of this year due to the weak Korean won that’s a result of Britain’s decision to leave the European Union, commonly known as Brexit. It’s said that the profits have been driven up by Samsung’s high-end TVs, connected home appliances, and air conditioners.

Things may not be this good for Samsung’s components business. Analysts forecast that the company’s component division, including Samsung SDI and Samsung Electro-Mechanics, will post disappointing earnings in Q2 2016. Samsung Electro-Mechanics is expected to post 21.7 billion won ($18.9 million) in operating income which will be a 49.4 percent decline from the previous quarter with total revenue coming in at 1.6 trillion won. Samsung SDI – the conglomerate’s battery-making arm – had a lot of red on its balance sheet in the first quarter of this year with a 704 billion won operating loss. Analysts expect that Samsung SDI is going to post another operating loss in Q2 2016 with some suggesting that it could be as high as 38.2 billion won.


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