On a consolidated basis, Samsung Electronics announced the fourth quarter of 2020, with sales of 61.5 trillion won and operating profit of 9.5 trillion won.
In 2020, the company recorded sales of 23.61 trillion won and operating profit of 3,59 trillion won.
Sales in the fourth quarter recorded 61,55 trillion won, down 8.1% from the previous quarter due to intensifying competition for set products and a decline in memory prices. Compared to the same period last year, it increased 2.8% due to improved parts demand.
Operating profit fell by KRW 3,300 billion to KRW 9.50 trillion compared to the previous quarter due to a decrease in memory prices, a decrease in sales of the set business and an increase in marketing expenses, and negative exchange rate effects, and the operating profit margin also fell to 14.7%.
Compared to the same period last year, both operating profit and margin increased due to the improvement in the display and memory industry.
Although demand for memory semiconductors was solid, mainly for mobile and consumer applications, the company said that the average selling price (ASP) continued to decline, negative exchange rates, and initial costs related to mass production of new lines.
System semiconductor orders from major global customers increased, but profits declined in the same period last quarter and last year due to the weak dollar.
For DP (Display Panel), the utilization rate of small and medium-sized panels increased significantly, and the performance of the large panel market improved significantly.
The wireless sales profit declined due to intensifying competition and increased marketing expenses at the end of the year, but continued efforts to improve the cost structure showed that it maintained a solid double-digit operating margin.
The network’s performance improved thanks to response to domestic 5G expansion and expansion of overseas 4G and 5G sales.
During the peak season at the end of the year, sales of CE continued to be strong, mainly in advanced markets, but profitability declined due to rising costs.
Regarding the welcome direction in the fourth quarter, most of the currencies in the dollar and euro and major emerging market currencies were significantly weaker than the won, resulting in a negative impact of about KRW 1.4 trillion compared to the previous quarter, mainly in the parts business. [email protected]