Samsung Electronics' 2022 third quarter operating results showed a sharp decline in operating profit of over 30% due to decreased memory performance and home appliance performance resulting from sluggish global consumption.

Samsung Electronics announced its 2022 third quarter operating results on the 27th. According to this, sales were 76.7817 trillion won, an increase of 3.8% compared to the same period last year, and operating profit was 10.8520 trillion won, a decrease of 31.4% compared to the same period last year. Net profit for the period was 9.3892 trillion won, a decrease of 23.6% compared to the same period last year.

Samsung Electronics achieved record quarterly sales in the third quarter despite very difficult business conditions marked by global inflation and slowing demand.

Samsung Electronics set record sales in all three quarters this year and is expected to record all-time high annual sales, following last year.

Although memory sales declined due to customer inventory adjustments, flagship smartphone sales performed well and foundry and small-to-mid-sized panels recorded peak quarterly sales, driving solid revenue growth.

For operating profit, SDC (Display) achieved peak quarterly profit due to increased demand for major customers' new products, and MX (Mobile eXperience) also improved performance due to strong flagship sales.

However, overall operating profit declined due to reduced memory profitability.

The DS (Device Solutions) division recorded 23 trillion won in quarterly sales and 5 trillion won in operating profit.

Memory performance decreased quarter-over-quarter due to customer inventory adjustments exceeding expectations and continued slowdown in consumer memory product categories such as mobile devices in China.

System LSI saw reduced profit due to demand slowdown in mobile and TV sectors, but foundry achieved peak performance through continuous advanced process yield improvements and expanded sales contributions from mature processes.

SDC recorded 9 trillion won in quarterly sales and 2 trillion won in operating profit.

Small-to-mid-sized displays saw significantly improved performance compared to the previous quarter and the same period last year as demand increased following new flagship smartphone launches including foldables, and market share within major customers' new products increased through technology differentiation.

Large displays continued to record losses due to weak TV and monitor market conditions and initial investment burden.

The DX (Device eXperience) division recorded 47 trillion won in quarterly sales and 4 trillion won in operating profit.

MX recorded solid profitability through efficient resource management despite continuing negative currency effects as flagship foldables and new wearable model sales showed strong performance.

Network improved performance focused on overseas business and continued new order acquisition activities including securing business from Comcast, the top U.S. cable operator.

VD (Visual Display) strengthened market leadership through expanded premium-focused sales, but profit declined due to reduced demand and increased costs.

Home appliances improved sales mix but continued to face material cost and logistics cost burdens amid weak consumption.

Harman achieved record quarterly performance as customer order volumes increased and consumer audio sales also rose amid solid demand for connected car technology and solutions.

Currency effects saw significant dollar strength negatively impact the DX business, but positive effects on the components business significantly outweighed this, resulting in approximately 1 trillion won of positive impact to company operating profit quarter-over-quarter.

The fourth quarter is expected to see continued weak global IT demand and soft memory market conditions.

Samsung Electronics plans to maintain improved performance trends in foundry and SDC while continuing efforts to secure profitability in DX.

Memory is expected to maintain server fundamental demand as core infrastructure investment continues, but customer inventory adjustment effects are expected to persist.

The company will maintain its DRAM business operation strategy focused on profitability through product mix management that considers cost competitiveness while actively responding to high-capacity product demand.

System LSI is expected to see increased SoC (System on Chip) sales following new product launches by mobile customers, and plans to expand sales of 200-megapixel image sensors.

Foundry is expected to see continued solid global customer demand and will continue performance improvement through additional yield enhancements.

SDC is expected to see continued growth in small-to-mid-sized panels driven by strong demand for premium smartphone OLED in which it holds unrivaled strengths.

Large panels plan to focus on QD-OLED expansion through year-end peak season response and customer expansion.

MX is expected to see continued solid sales of premium models and plans to expand volume through increased tablet and wearable sales and new mid-to-low-end model launches.

As macroeconomic uncertainty is expected to persist, efforts to secure profitability will also continue.

Network plans to continue strengthening its overseas business foundation in North America, Japan, and other regions.

VD plans to focus on profitability improvement through securing peak-season premium demand and cost efficiency.

Home appliances plan to expand sales through premium offerings centered on BESPOKE and increased online channel sales as the year-end peak season approaches.