Samsung today announced its financial result for the full 2017 and Q4 2017 ending on December 31, 2017. According to Samsung, they posted a consolidated revenue of 65.98 trillion won and an operating profit of 15.15 trillion won for the fourth quarter of 2017. If we talk about the full year, Samsung recorded 239.58 trillion won and operating profit of 53.65 trillion won. The revenue and operating profit are way better when you compare with for the same period year-on-year (YoY) or for the full year.
Components business contributed largely to the Q4 earnings with the Memory business that manufactures DRAM and NAND showing good demand. The mobile business that used to be the star performer declined this quarter due to high marketing costs.
Moreover, Samsung today announced the approval of 50:1 stock split that will help to enhance shareholder value.
Here’s a breakup of Samsung Electronics’ individual businesses:
The semiconductors business that comprises of Memory and System LSI divisions posted consolidated revenue of 21.11 trillion won and an operating profit of 10.90 trillion won.
The memory division saw a strong quarter due to demand for high-density mobile products as well as server SSD. DRAM’s demand also increased QoQ due to seasonality. The System LSI business slowed down due to weak seasonality of SoCs and image sensors. However, Samsung expects the sales to pickup this year as they will expand the processors to other applications than mobile devices and image sensors due to the adoption of dual camera.
Going forward, Samsung expects weak seasonality for NAND and server SSD but strong demand whereas DRAM’s slack in demand will be picked up by demand from datacenters.
Samsung’s Foundry business earnings decreased but gained new customers in China. This year, Samsung will start offering chips between 8nm and 11nm and will start risk production of 7nm.
The Display Panel division recorded a revenue of 11.18 trillion won and an operating profit of 1.41 trillion won due to increased shipments of OLED panels for smartphones.
In 2018, Samsung expects demand for its OLED panels but uncertainties for its LCD panels due to intense competition.
IT & Mobile Communications:
The IT & Mobile Communications division posted 25.47 trillion won in consolidated revenue and operating profit of 2.42 won despite fewer shipments in the last quarter.
Samsung expects the demand for smartphones to rise and will “strengthen product competitiveness by differentiating core features and services.”
The CE division consists of Visual Display (VD), Digital Appliances (DA) and cumulatively, the division posted consolidated revenue of 12.72 trillion won and a profit of 0.51 trillion won.