Samsung Elec sustains Q4 profit above $8 bn, 29.5% jump in FY20

Samsung Electronics Co. Friday projected a 26 percent on-year growth in its operating profit for the October-December period and almost 30% gain for the full year, coming out the Covid-19 year strong thanks to brisk sales of high-end chips and home appliances.

The world’s top memory chip and smartphone maker in its preliminary earnings release on Friday reported an operating profit of 9 trillion won ($8.23 billion) in the quarter ended December, down 27.1 percent against the previous two-year best in the third quarter due to stronger Korean won currency against the U.S dollar and resurgence of Covid-19 outbreak.

Sales reached an estimated 61 trillion won, losing 8.9 percent on quarter but up 1.9 percent on year.

Its shares finished Friday 7.1 percent higher at 88,800 won in Seoul.

The figures are mostly in line with consensus of 9.5 trillion won in operating income on 61.3 trillion won in sales, according to Seoul-based financial data provider FnGuide on Jan. 6.

For full 2020, the company estimated its operating profit to reach 35.95 trillion won, gaining 29.5 percent from the previous year. Sales are expected to have risen 2.5 percent to 236.26 trillion won.

Profit from the semiconductor business, responsible for more than three-quarters of the company’s total earnings, was estimated at 4.3 trillion won in the fourth quarter due to the unfavorable foreign exchange rates, according to analysts.

Smartphone shipments also declined by 20 million units in the final quarter due to lockdowns in Europe, bringing profit from the IT and mobile business to stop at around 2.6 trillion won.

Samsung Electronics is due to release final and detailed results for the fourth quarter and full 2020 at the end of January.

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