Pressed for profit: Samsung revamping troubled OLED display unit- Nikkei Asian Review
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`Business > Companies
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`April 21, 2015 7:00 pm JST
`Pressed for profit
`
`Samsung revamping
`troubled OLED
`display unit
`
`KENTARO OGURA, Nikkei staff writer
`
`Samsung Display’s OLED panel plant in
`Chungcheongnam-do, western South Korea
`
`SEOUL -- Samsung Electronics is revamping its organic light-emitting diode
`display business in hopes of finally turning a profit from the ailing unit.
`
`To focus more rigorously on profitability, the South Korean electronics maker
`has split the OLED panel unit from its liquid crystal display business and is also
`considering resuming production of large-format OLED panels for TVs.
`
`No time to lose
`
`Rehabilitating underperforming businesses has become an urgent task for
`Samsung given the slowdown in its smartphone business, the group’s main profit
`engine.
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`A Samsung Electronics task
`force in charge of groupwide
`business strategy began
`examining Samsung Display’s
`management late last year. The
`team proposed remedial
`measures in March that have
`since been reflected in the steps
`taken to repair the OLED
`business.
`
`One of those measures
`involved Samsung Display,
`which is 85% owned by
`Samsung Electronics, dividing
`its operations into two separate
`businesses -- an LCD and an
`OLED unit. A vice president
`appointed to head each unit will
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`Pressed for profit: Samsung revamping troubled OLED display unit- Nikkei Asian Review
`Page 2 of 3
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`operations, including
`production and marketing.
`Allocations of capital
`investment and research and
`development spending will be
`based on each unit’s earnings
`performance.
`
`Samsung Display’s operating
`profit plunged some 80% in
`2014 from the previous year to
`594.5 billion won ($554
`million). The principal factor
`behind the decline, industry
`observers say, is the poor
`performance of its OLED
`business.
`
`The company manufactures
`only small and midsize
`OLED panels for smartphones
`and tablet computers, most of
`which go to supplying Samsung
`Electronics’ high-end devices.
`
`Sluggish sales of Samsung
`smartphones pushed down
`Samsung Display’s plant utility
`rate.
`
`Samsung Display was
`founded in April 2012 as a
`spinoff of Samsung Electronics’
`LCD panel operations. In July
`that year, the display
`manufacturer acquired a
`number of related companies,
`including Samsung Mobile
`
`Display, which focused on OLED displays.
`
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