Samsung announced the financial result of last quarter of 2011 that ended on December 31. The Korean company posted revenues of 47.3 trillion won and a consolidated operating profit of 5.3 trillion won which is a 79 percent rise year-on-year (YoY). The consolidated net profit stood at 4 trillion won.
Rounding up the year, Samsung’s 2011 revenue stood at an all-time high of 165 trillion won, 7 percent higher YoY, operating income of 16.25 trillion won and net income of 13.73 trillion won, a 15 percent decrease YoY.
Needless to say, the star business for Samsung this quarter is Telecommunications, thanks to the brisk sales of smartphones like Galaxy S II, Galaxy Nexus, Galaxy Ace and Galaxy Note that resulted in a higher average selling price.
Here’s a breakdown of figures and some projections for next quarter for different businesses.
The Semiconductors business posted a consolidated operating profit of 2.31 trillion won on revenue of 9.17 trillion won. For 2011, semiconductors operating profit reached 7.34 trillion won on revenue of 36.99 trillion won.
For this quarter, Samsung expects sluggish demand for PC DRAM whereas the NAND flash chip demand will remain steady or increase slightly due to the rise of mobile devices.
Samsung’s Display Panel business recorded an operating loss of 0.22 trillion won and revenue of 8.55 trillion won despite having a sales increase of 19 percent from year ago. The business posted 0.75 trillion won operating loss and revenue of 29.24 trillion won for the whole fiscal year 2011.
Samsung projects the demand in display panel business will weaken due to seasonality. However, Samsung will offer a differentiated product mix in the form of tablet, 3D and LED television panels and most importantly, smartphone display panels.
Samsung has been enjoying a lot of success on the mobile devices front and it shows on the financial result as well. Telecommunications business posted a record quarterly operating profit of 2.64 trillion won with revenue reaching 17.82 trillion won. Revenues were 11.75 trillion won for the same period in 2010.
The full fiscal 2011 revenue of Telecommunications business stood at 8.27 trillion won, up 90 percent YoY and sales of 55.53 trillion won that accounted almost one-third revenue of Samsung Electronics for 2011.
Samsung expects the demand for feature phones to remain stagnant whereas the demand for entry-level smartphones and tablets will rise significantly. Samsung also expects to strengthen its position in the wireless network market with the expansion of LTE service in Korea and North America.
Digital Media & Appliances:
The Digital Media & Appliances business that includes Visual Display, Digital Appliances, IT Solutions and Digital Imaging recorded a quarterly revenue of 16.96 trillion won while operating profit stood at 0.57 trillion. As for the full 2011, the business posted an operating profit of 1.41 trillion won on revenue of 58.92 trillion won.
Samsung expects weak an on-quarter decrease in the demand despite the rise in the overall market. Samsung will emphasize on its LED TV range for 2012.