Samsung announces revenues of $52.7 billion

January 25, 2013 • Gadgets and Gaming

Samsung Electronics Co has announced revenues of 56.06 trillion Korean Won ($52.7 billion) on a consolidated basis for the fourth quarter ended December 31, 2012, a 7-percent increase quarter-on-quarter.

Samsung President JK Shin (image: Engadget)

Consolidated operating profit for the quarter hit 8.84 trillion Won, representing a 10-percent increase on-quarter, while consolidated net profit for the same quarter was 7.04 trillion Won.

The full-year 2012 operating profit was 29.05 trillion Won on revenue of 201.10 trillion Won.

In its earnings guidance disclosed on January 8, Samsung estimated fourth quarter consolidated revenues would reach approximately 56 trillion Won with consolidated operating profit of approximately 8.8 trillion Won.

Highlighting the quarterly performance, Mobile Communications generated quarterly revenues of 27.23 trillion Won, a 4-percent increase compared with the previous quarter.

The growth was mainly driven by solid sales of Samsung’s GALAXY S III and GALAXY Note ll. All told, operating profit for IT & Mobile Communications, which encompasses four business units including Mobile Communications, was 5.44 trillion Won on revenues of 31.32 trillion Won.

“Despite uncertainties in Europe and concerns over the U.S. fiscal cliff creating a difficult business environment, we did our best this quarter to achieve strong earnings based on a strategic focus on differentiated and high value-added products as well as our technological competitiveness,” said Robert Yi, Senior Vice President and Head of Investor Relations.

“Heading into this year, we are expecting a slow recovery in the component business due to reduced capital expenditures, while competition in the set business will intensify further as demand slows and the mid- to low-end market expands,” he added. Mr. Yi also expressed caution over the continued strength of the Korean Won in 2013.

Samsung’s standout lineup of LED TVs, including premium models targeting advanced markets and TVs tailored to emerging markets, has also improved quarter-on-quarter earnings. Although demand for home appliances retreated in the December quarter due to a tepid global economy, Samsung saw increased sales of high-end refrigerators and washers in the U.S. and in European markets.

On the components business side, demand for PC DRAM remained weak but growth of high value-added products such as server and mobile DRAM was constant due to increased sales of mobile devices. While the Semiconductor Business landed profits in the quarter, the Display Panel segment struggled, as demand for IT panels for notebooks and monitors remained slow. On the other hand, profitability in LCD panels for TVs and OLED panels for smartphones prevented wider losses.

As for this year’s capital expenditure, the size of investment is expected to be similar to that of 2012’s. The weakening global economic recovery and looming market uncertainties are anticipated to weigh on plans for investment and performance this year, but despite global economic jitters, Samsung will respond to the market’s ebb and flow with a capex plan that is flexible in manner.

Staff writer

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