Samsung today announced the financial results of its fourth quarter that ended on December 31, 2013. Samsung posted a revenue of 59.28 trillion Korean won, which is just a 0.3 percent increase quarter-on-quarter. The reported consolidated operating and the net profit reached 8.31 trillion won and 7.30 trillion won respectively. This is the first time in many quarters, Samsung had a lower operating profit quarter-to-quarter (18 percent decrease).
However, a good first three quarters combined with this one have resulted in an all-time high revenue of 228.69 trillion won for 2013, 14 percent higher than the previous year while the full year operating profit reached 36.79 trillion won and net profit of 30.47 trillion won.
Samsung also posted figures of individual businesses which are as follows:
Semiconductors:
The semiconductors business that includes Memory and System LSI Samsung posted a consolidated revenue of 10.44 trillion won, a 2 percent increase on-quarter with an operating profit of 1.99 trillion won. The business maintained profitability due to the cost competitiveness of memory products while Samsung said the demand for application processors for mobile devices was lower than expected.
Entering the new year, Samsung expects the memory market supply to remain tight due to limited investments by major players but expects to improve profitability in the System LSI unit by introducing 20-nanometer-class mobile AP and strengthening high-value LSI product lineups.
IT & Mobile Communications:
The IT & Mobile Communications division recorded a revenue of 33.89 trillion won, out of which 32.17 trillion won contributed from the mobile handset sales. The operating profit reached at 5.47 trillion won.
Samsung says the earnings of the business fell due to marketing expenditure but were happy to report a an increase in shipment of tablets.
In 2014, Samsung expects to release mobile devices across various price points in different regions while expects the tablet market to increase by 20 percent.
Display Panel:
The Display Panel business posted an operating profit of 110 billion won on revenue of 6.46 trillion won, a decline of both sales and profit. Samsung says the panel shipment were higher but was affected due to a decline in the average selling price.
Consumer Electronics:
Consumer Electronics business consists of Visual Display and Digital Appliances reached an operating profit of 660 billion won on revenues of 14.27 trillion won, which is an 88 percent and 18 percent increase respectively (Q-o-Q).
Samsung is banking on the upcoming FIFA World Cup to improve the sales of its premium models and will cater to different markets with a mix of products.
Leave a Reply