Thanks to semiconductors and home appliances… Samsung·LG’s fourth quarter of last year is also expected to be’good performance’

It is analyzed that Samsung Electronics and LG Electronics continued to perform well in the fourth quarter of last year. Even in the aftermath of the novel coronavirus infection (Corona 19), sales and operating profit increased compared to the same period last year due to robust sales of flagship products such as semiconductors and home appliances.

According to Wise Report, a financial information company on the 6th, Samsung Electronics’ earnings forecast for the fourth quarter of last year was 61,894.9 billion won in sales and 9.74 trillion won in operating profit. Compared to the same period last year, sales increased 3.3% and operating profit increased 36%.

Samsung Electronics’ operating profit in the third quarter of last year rose to 10 trillion won in two years. At that time, sales of the home appliance business increased significantly due to pent up demand and the’zipcock effect’ caused by Corona 19, recording the highest quarterly performance ever. Compared to this, in the fourth quarter, sales decreased by KRW 5 trillion and operating profit decreased by KRW 2.6 trillion. Smartphone shipments declined and the won’s value increased, which is one of the main reasons.

It is predicted that 4Q results were led by the semiconductor business. In the market, the operating profit of Samsung Electronics’ device solution (DS) division in the fourth quarter is forecast to reach 4.100 trillion won to 4.500 trillion won. Compared to the same period of the previous year (3.4 trillion won), it increased by about 700 billion to 1 trillion won. The operating profit of the consumer electronics (CE) division, which is in charge of the TV and household appliances business, is expected to be between 800 billion and 1.2 trillion won, similar to the same period last year (810 billion won).

LG Electronics is also expected to continue its earnings growth in 4Q with the introduction of new home appliances. It is expected to break the so-called ‘Sanggo Ha-Jin’ Jinx, which has better results in the first half of each year and sluggish in the second half of the year. LG Electronics usually expanded its marketing activities in the fourth quarter, resulting in worsened profits. However, last year, due to Corona 19, the proportion of online sales of home appliances and TVs increased, leading to an improvement in profitability.

Wise Report predicted that LG Electronics recorded sales of 17,8603 trillion won and operating profit of 6198 billion won in the fourth quarter of last year. Sales increased by 11.2% and operating profit by 508% compared to the same period last year. Last year, sales of 62 trillion 62 trillion won, and operating profit of 3,205.8 billion won.

The loss of the smartphone business, which continues to suffer losses, is also expected to improve. This is because sales of low-end smartphones increased in North America and Latin America. The electronics (automotive electronic equipment) division, which is being nurtured as a new business, is also expected to narrow the deficit due to the recovery of the European and North American markets, increasing sales.

The two companies are expected to disclose provisional results for the fourth quarter around the 8th, and final results at the end of this month.

Reporter Park Hyung-soo [email protected]