Samsung 2001 Annual Report Download - page 10

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In Q2, operating profit plummeted 63% as sales slipped 7% from Q1. Buoyed by
strong domestic demand, sales for the Information & Communications and Home
Appliances units rose 22% and 14%, while declining DRAM and LCD prices pushed
Digital Media and Semiconductor sales down 12% and 27%. Operating income fell
sharply for all units except Information & Communications, which posted a 28% gain.
The low point of the year came in Q3 when operating profit crashed 97% as
sales slid another 10%. Only the Digital Media unit was able to deliver a modest 4% sales
growth. Information & Communications sales fell a slight 5%, while Home Appliances
and Semiconductor sales dropped another 26% and 25%. Despite the decline in sales,
the Information & Communications unit saw operating income jump 21% as new
mobile phones hit the market and major equipment orders shipped for overseas pro-
jects. The Digital Media and Home Appliances units saw sharp 33% and 87% declines
in operating income as the Semiconductor unit recorded its first quarterly operating loss
of the current industry downturn.
The year ended with a slight rebound in Q4 as operating profit skyrocketed
279% over Q3 and sales jumped 17% to nearly reach Q1 levels. The Digital Media,
Home Appliances, Information & Communications, and Semiconductor units enjoyed
quarter-on-quarter growth of 10.6%, 11%, 20.6%, and 25%. While the Home Appliances
and Semiconductor units recorded operating losses for the quarter, the Digital Media
and Information & Communications units delivered encouraging 70% and 35% increas-
es in operating income as new digital TVs and mobile phones shipped.
In summary, our 2001 performance, while disappointing, did demonstrate that
our ongoing efforts to diversify our product portfolio since the 1997 Asian financial cri-
sis have been very effective. Sales were remarkably evenly distributed across three of
our four units thanks to strong 18.6% year-on-year growth by the Information &
Digital Solution Network W8,883.6 -31.41% Other
4
38.4 +0.94% Telecommunication Network W9,033.5
Mar 15 RE-CM160S 1,600-watt commercial microwave ships Mar 22 US$16 billion strategic alliance with Dell Mar 31 Record 100
08