Samsung Electronics announced its fourth quarter last year’s earnings of 61.5 trillion won in sales and 9.5 trillion won in operating profit on the 28th. The annual performance recorded 236 trillion 8100 won in sales and 35.9 trillion won in operating profit.
In the fourth quarter, sales fell 8.1% QoQ to 61.55 trillion won due to intensifying competition for set products and lower memory prices. Compared to the same period of the previous year, it increased 2.8% due to improved parts demand.
Operating profit decreased by KRW 3.30 trillion from the previous quarter to KRW 9.5 trillion due to a decrease in memory prices, a decrease in sales of the set business, an increase in marketing expenses, and negative exchange rates, and the operating margin also fell to 14.7%.
Compared to the same period of the previous year, both operating profit and margin increased due to the improvement in the display and memory market conditions.
Although demand for memory semiconductors was solid, mainly for mobile-consumer applications, the average selling price continued to decline, negative exchange rate effects, and initial costs related to mass production of new lines.
For system semiconductors, orders from major global customers increased, but profits declined QoQ and YoY due to the weak dollar.
Display panel (DP) performance improved significantly compared to the previous quarter and the same period last year due to a large increase in the utilization rate of small and medium-sized panels and the improvement of the large panel market.
For wireless, sales profit declined due to intensifying competition and higher marketing expenses at the end of the year, but continued efforts to improve cost structure maintained a solid double-digit operating margin of the previous year.
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 the impact of rising costs.
Regarding the welcome direction in the fourth quarter, the dollar and euro and most of the currencies in major emerging markets showed a sharp decline compared to the won, resulting in a negative impact of KRW 1.4 trillion compared to the previous quarter, mainly in the parts business. Ⓒ Safe Times
Copyright holder © Unauthorized reprinting and redistribution of the media is prohibited to create a world where anyone can live with confidence