Samsung Q4 Profits Up 50% Despite Note 7 Mishap

Seoul, Samsung posted KRW 53.33 trillion in consolidated revenue and KRW 9.22 trillion in operating profit for the quarter. The profits are 50% higher compared to the same period of last year.

For the full year, the company reported revenue of KRW 201.87 trillion and full-year 2016 operating profit of KRW 29.24 trillion. Fourth quarter earnings were driven by the components businesses, mainly the Memory business and the Display Panel segment, which manufactures OLED and LCD screens. Robust sales of high-end, high-performance memory products and expanded process migration in V-NAND, plus strong shipments of OLED and large-size UHD panels contributed to profitability. The stronger US dollar against the Korean won also had a positive impact on operating profits.

The Mobile business registered gains YOY due to solid sales of flagship products such as Galaxy S7/ S7 edge and improved profitability of mid-to-low end models. The Consumer Electronics division posted an earnings decline, despite increased sales of premium TVs including SUHD and curved TVs. The Digital Appliances business also saw positive demand in the fourth quarter, but new investments in B2B resulted in a slip in earnings.

For 2016, Samsung achieved solid results despite the Note 7 discontinuation in the second half as a result of continuous efforts during past two to three years to strengthen its component business competitiveness by focusing on value-added products and widening the technology gap in the DRAM business as well as strategic investments in V-NAND and OLED. The company also made several key acquisitions and divestures which will enable the future growth.

Source: Qatar News Agency