Samsung’s fourth-quarter earnings climb | Nasdaq
(RTTNews) – Samsung Electronics Co Ltd (SMSN.L, SSNNF.OB, SSNLF.OB) reported fourth-quarter profit that climbed 65.13% from a year earlier, reflecting higher sales memory chips and higher margins in contract manufacturing chips. Quarterly sales increased by 24.39% over the previous year.
Samsung said it will focus on improving the yield of its advanced process to improve its supply stability in the first quarter. In addition, the company will continue its technical leadership with mass production of the 1st generation GAA process in the first half of 2022.
Looking to the first quarter, Samsung expects improved year-over-year results for the mobile display business, reflecting a release of new smartphones by key customers and a growing customer base in the foldable display.
In the large screen business, losses are expected to be partially mitigated on the mass production of QD panels, as TVs and monitors adopting QD panels are expected to debut in the markets.
Looking ahead to the first quarter, demand for smartphones and tablets is expected to decrease quarter-on-quarter amid low seasonality as well as uncertain component supply.
In the first quarter, market demand is expected to decline year-over-year for TVs and home appliances, and high material and logistics costs are expected to persist for home appliances.
In 2022, while market uncertainties are expected to persist, Samsung expects stronger demand for premium and super large TVs.
In 2022, the memory industry expects the demand for servers to increase, due to increased IT investments and new high-core processors, while the expansion of the 5G lineup is expected to increase content per box for mobile, although challenges related to supply issues and COVID-19 are likely to persist.
The South Korean electronics giant said its net profit attributable to shareholders of the parent company for the fourth quarter soared 65.13% to 10.64 trillion Korean won, from 6.45 trillion Korean won in the previous quarter. same quarter last year.
Operating profit for the quarter rose 53.28% to 13.87 trillion won from a year earlier, driven by semiconductor businesses.
Fourth-quarter sales were 76.57 trillion won, an increase of 24.39% year-on-year, mainly driven by finished product business, with higher premium smartphone sales range, including foldable phones, as well as TVs and home appliances.
The semiconductor companies posted consolidated revenue of 26.01 trillion won and operating profit of 8.84 trillion won in the fourth quarter.
The Display Panel business posted consolidated revenue of 9.06 trillion won and operating profit of 1.32 trillion won in the fourth quarter. The mobile panels business saw its profits continue to improve, mainly due to strong demand for new smartphones from its main customers.
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