October 28, 2016
As shareholders approve the $1 billion takeover, the company reports a 30 percent year-on-year drop.
Samsung announced its Q3 earnings yesterday, with revenue for the quarter KRW 47.82 trillion ($41.8 billion/€38.3 billion), a decrease of KRW 3.87 trillion ($3.38 billion/€3.1 billion) year-over-year, while operating profit for the quarter was KRW 5.2 trillion ($4.5 billion/€4.1 billion), a decrease of KRW 2.19 trillion ($1.91 billion/€1.75 billion) year-over-year. Looking ahead to the fourth quarter, the company expects earnings to improve driven by strong performance in the components business.
Following the announcement of the earnings, Samsung’s Board of Directors had called the meeting on 12 September to seek shareholder approvals for two agenda items: the spin-off of the Company’s printing business unit and the nomination of Jay Y. Lee as a member of the Board.
As reported by Samsung, upon shareholders’ approval, Samsung will spin off the printing business into a separate company as of 1 November, and sell the business to HP Inc.
Oh-Hyun Kwon, the Chairman of the Board of Directors, stated: “This year, Samsung Electronics is entering a new stage of growth thanks to the unparalleled competitiveness of the component products, including V-NAND and OLED, and as the Company works toward reinvigorating its mobile business.
“The decision [to sell to HP Inc] was made in the context of Samsung Electronics’ commitment to an on-going reorganisation of business units in order to further concentrate on core competencies and to maximize competitiveness. Going forward, the company will continue along this path of focusing on what it does best.”
On the appointment of Mr Lee, Mr Kwon said: “In order to respond to the rapidly changing business conditions and to achieve sustainable levels of growth, the Board has agreed that now is the right time to nominate Mr. Lee as a member. Mr. Lee’s election to the Board will allow him to more actively participate and take formal responsibility in the company’s important decision making, contributing to creating long-term, sustainable value for all of our stakeholders.”
Categories : World Focus