Sales in the fourth quarter of last year: 61.55 trillion won, annual sales of 23.61 trillion won
Compared to the previous year, sales increased by KRW 640 trillion and operating profit by KRW 8.2 trillion
[금융경제신문=최원석 기자] On a consolidated basis, Samsung Electronics disclosed its fourth quarter 2020 earnings of 61.5 trillion won in sales and 9.5 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. According to the announced fourth quarter results, Samsung Electronics recorded an annual sales of 23.61 trillion won and an operating profit of 35.99 trillion won in 2020.
Operating profit declined by 3.3 trillion won from the previous quarter to 9.5 trillion won, due to a decline in memory prices, a decline in sales of the set business, an increase in marketing expenses, and negative exchange rates, and the operating margin 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 and consumer applications, the average selling price (ASP) continued to decline, negative exchange rates, 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.
As for DP (Display Panel), the utilization rate of small and medium-sized panels increased sharply and the performance of the large panel market improved significantly compared to the previous quarter and the same period last year.
For wireless, sales profit declined due to intensifying competition and increased marketing expenses at the end of the year, but continued efforts to improve cost structure maintained the 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.
Reporter Choi Won-seok [email protected]
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