The world’s largest memory
The news sent Samsung shares rising 1.9 percent.
Brisk sales of memory chips and smartphone screens had been expected to boost the company’s bottom line but the outcome exceeded analyst expectations of a fourth-quarter profit of some 8.4 trillion won.
“This is well beyond market expectations”,
The strong result came despite a global recall of the Galaxy Note 7, after owners reported some devices overheating and bursting into flames, in a crisis that damaged the reputation of the world’s largest smartphone maker.
Strong sales of organic light-emitting diode screens for smartphones and a weaker won also contributed significantly to the earnings growth, analysts said.
The result was the largest since the third quarter of 2013 when the company reaped a 10.2 trillion won operating profit.
“The company benefitted from strong demand for memory chips and hectic sales of its high-end smartphone screens using organic light-emitting diodes (OLED)”, Roh said.
Chip prices are expected to continue rising in coming months and may surge more than 30 percent in the first quarter alone, he said.
The depreciation of South Korea’s won against the dollar also contributed to the gains, as Samsung settles most of its component sales in the US currency, he added.
Kim Dong-Wan at Macquarie Securities said global memory chip markets made a turn for the better in the third quarter last year, thanks to soaring demand for high-powered mobile devices.
Profit margins for OLED screens were hovering at more than 20 percent and Samsung has no competitors in plastic OLEDs supplied to iPhones, he added.
Fourth-quarter sales were estimated at 53 trillion won in the quarter, down 0.6 percent on year, Samsung said.
Samsung predicted its operating profit for the whole of 2016 would rise more than 10 percent on-year to 29.2 trillion won.
IBK Securities analyst Lee Seung-Woo estimated the company’s overall 2017 operating profit would be more than 40 trillion won.
© 1994-2017 Agence France-Presse
In other news...
South Africa is in a very real battle. A political fight where terms such as truth and democracy can seem more of a suggestion as opposed to a necessity.
On one side of the battle are those openly willing to undermine the sovereignty of a democratic society, completely disregarding the weight and power of the oaths declared when they took office. If their mission was to decrease society’s trust in government - mission accomplished.
And on the other side are those who believe in the ethos of a country whose constitution was once declared the most progressive in the world. The hope that truth, justice and accountability in politics, business and society is not simply fairy tale dust sprinkled in great electoral speeches; but rather a cause that needs to be intentionally acted upon every day.
However, it would be an offensive oversight not to acknowledge that right there on the front lines, alongside whistleblowers and civil society, stand the journalists. Armed with only their determination to inform society and defend the truth, caught in the crossfire of shots fired from both sides.
If you believe in supporting the cause and the work of Daily Maverick then take your position on the battleground and sign up to Maverick Insider today.
For whatever amount you choose, you can support Daily Maverick and it only takes a minute.
The Pentagon has twice as many bathrooms than necessary due to segregation being in force when it was constructed.