Samsung Electronics reported financial results for Q3 ended September 30, 2018. The company posted KRW 65.46 trillion in consolidated quarterly revenue, up 5.5 percent from a year earlier, and KRW 17.57 trillion in quarterly operating profit, up 20.9 percent. Total revenue increased YoY and QoQ on the back of strong sales of memory products and OLED panels. The display panels segment posted KRW 10.09 trillion in consolidated revenue and KRW 1.10 trillion in operating profit for Q3. Total earnings for the display business increased QoQ due to increased shipments of both OLED and LCD panels. Looking ahead to Q4, Samsung expects solid demand to continue in the OLED business. The LCD business is likely to face unfavorable supply and demand dynamics due to ongoing capacity expansions in the industry and weak seasonality. In 2019, the OLED business will look to expand into new product categories by continuing to offer technologically differentiated products and to broaden the customer base with flexible panels. For the LCD business, due to uncertainties caused by capacity expansions in the industry, the company will focus on growth in value-added products such as quantum dot, 8K resolution and ultra-large screen TVs.
The CE division, including the visual display and digital appliances businesses posted KRW 10.18 trillion in consolidated revenue and KRW 0.56 trillion in operating profit for Q3. Earnings for the visual display business improved both YoY and QoQ thanks to increased sales of premium products such as UHD and ultra-large screen TVs. In particular, QLED TV sales tripled YoY thanks to favorable market feedback for picture quality and differentiated features such as ambient mode and one invisible connection. Looking to Q4, the company projects the TV market to grow slightly YoY. In 2019, overall TV market demand is expected to remain the same as this year. Samsung will seek to improve profitability by solidifying its leadership in the premium market with QLED and ultra-large screen TVs while expanding sales of QLED 8K TV and reinforcing its lineup of ultra-large TVs of 75-inch and above.
For the digital appliances business, earnings decreased slightly YoY despite increased sales of premium products such as Chef Collection refrigerators and Flex-Wash washers, amid economic slowdowns in emerging markets. In Q4, market demand may decline due to the global trade issues and foreign exchange risks in emerging markets. Looking ahead to 2019, the company will focus on improving profitability by releasing innovative premium products, expanding online sales, and strengthening its B2B business with built-in appliances and system air conditioners.
Looking ahead to Q4, Samsung expects overall earnings across the company to decline. Earnings will remain strong from OLED panels thanks to continued high demand from major customers. The CE division will benefit from strong year-end seasonality in Q4. It expects earnings to rise on the back of higher consumer demand for QLED TVs and premium home appliances. Looking further ahead to 2019, earnings are forecast to be weak for Q1 due to seasonality. Moreover, Samsung will continue to focus on strengthening its competitiveness in emerging technologies, such as AI and automotive electronics.