[Infostock Daily= Reporter Lee Dong Hee] Samsung Electronics announced its 4Q results of consolidated sales of 59.88 trillion won and operating profit of 7.1 trillion won. The company recorded sales of 230.4 trillion won and operating profit of 27.7 trillion won per year.
Sales increased slightly in 4Q due to strong sales of premium set products compared to the same period of last year, and operating profit fell by 3.64 trillion won (33.7%) due to weak memory performance.
In the semiconductor business, earnings declined due to a decline in DRAM prices for memory compared to the same period of last year, and profit increased due to an increase in demand for high-pixel image sensors and high-performance computing (HPC) chips for system semiconductors.
In the display business, small and medium-sized displays showed a slight decline in earnings due to weak demand for some premium products, and large-sized displays also fell due to industry supply expansion.
The IM business improved earnings on the back of increased sales of flagship products and reorganization of the Galaxy A series lineup.
In the CE business, sales of premium TV products such as QLED and ultra-large-sized products increased, as sales of new lifestyle home appliances and profitability of refrigerators and washing machines improved.
The exchange rate impact in 4Q was weaker than the won in major markets such as the US dollar and the euro, and had a negative impact on operating profit of about 300 billion won .
In the first quarter of this year, earnings are expected to decline due to the seasonally low season.
In the semiconductor business, demand for some servers and mobiles is expected to be solid in memory, but earnings are expected to decline due to low-demand season. In the display business, demand for major customers is slowing for small and medium-sized panels, and large panels are expected to suffer from deficits under low-demand seasons.
The wireless business is expected to generate quarterly profits due to increased marketing expenses, although new flagship and foldable products are being launched.
Samsung Electronics expects major businesses to grow this year, with uncertainties in the global management environment continuing.
In the case of memory, the semiconductor business plans to normalize memory inventory and strengthen technology leadership in the first half of the year.
System LSI will respond to market demand with differentiated products due to the expansion of 5G chips and high-resolution sensor adoption, while Foundry will continue to expand the mass production of EUV 5 · 7 nanometers and diversify its customers, while strengthening its technological competitiveness through the development of 3 nano GAA processes.
In the case of small and medium-sized displays, the display business will strengthen leadership with differentiated technology and design, and will actively respond to new demand such as foldables. In the case of large-sized displays, oversupply continues, and QD display-oriented business structure conversion costs are expected to weaken.
The IM business will expand its 5G product lineup for wireless and launch foldable products with new designs to focus on premium product sales, while the network will actively promote overseas 5G business.
The CE business plans to expand sales of premium products such as QLED 8K TV, micro LED and bisfork appliances.
Reporter Lee Dong Hee nice1220@infostock.co.kr
