Samsung Electronics last year’s operating profit of 35.95 trillion won… 29.5% ↑ compared to the previous year (total)

Input 2021.01.08 08:45 | Revision 2021.01.08 09:23

Operating profit of 9 trillion won for the fourth quarter of 2020… 25.7% increase over the previous year

Samsung Electronics (005930)Last year achieved an operating profit of 35.95 trillion won. This is an increase of 29.46% from 27 trillion won in 2019. In spite of the new coronavirus infection (Corona 10), it was successful. Sales increased 2.54% to 236 trillion won.

Samsung Electronics announced on the 8th that it had recorded sales of 61 trillion won and operating profit of 9 trillion won in the fourth quarter of 2020 as a result of aggregated consolidated provisional performance. Compared to the third quarter of last year, which exceeded 10 trillion won in operating profit in two years, it decreased slightly.

Samsung Electronics’ 4Q earnings are slightly lower than the original stock price forecast (consensus). F&Guide, a financial information company, forecasts Samsung Electronics’ fourth quarter 2020 results to be KRW 61,287.8 billion in sales and KRW 9,543.8 billion in operating profit.

The lower performance compared to the third quarter is that the corona 19 re-proliferates in Europe, Samsung Electronics’ major market, and a lockdown (blockade) was imposed, resulting in a decline in consumer sentiment. It was also analyzed as a result of a decrease in sales of parts such as semiconductors and displays as the value of the won increased.

The stock market analyzed that the fourth quarter of Samsung Electronics was also led by semiconductors. In the fourth quarter of 2020, the operating profit of the device solution (DS) division is expected to reach 4.100 trillion to 4.5 trillion won, which is expected to increase by about 700 billion to 1 trillion won compared to 3.5 trillion won a year earlier. However, it is lower than the previous quarter (3rd quarter of 2020) of 5.54 trillion won.

The IT and Mobile (IM) division, where smartphones are the main focus, is expected to have an operating profit of 2.4 trillion to 2.5 trillion won, similar to last year. It is predicted that operating profit will decrease by 2 trillion won compared to 4.5 trillion won in the previous quarter due to the blockade (lockdown) issued by the corona re-proliferation in Europe and increased marketing costs.

In the consumer electronics (CE) division, which includes TV and household appliances, operating profit in the fourth quarter is estimated at 800 billion to 1.2 trillion won, similar to the same period last year (810 billion won). Compared to the third quarter, which had the effect of corona pent-up (explosion of suppressed demand), it was a little behind, but considering the decrease in sales volume due to European lockdown and the increase in display panel prices, it is evaluated that it was a good thing.

Samsung Electronics’ 2020 annual performance, as determined through its provisional 4Q results, is sales of 23.62 trillion won and operating profit of 35.95 trillion won. They increased 2.54% and 29.46% compared to the previous year, respectively.

Samsung Electronics is scheduled to announce its final results for the fourth quarter of 2020 at the end of this month.