Samsung Electronics Co Ltd (SMSN.L,SSNNF.OB,SSNLF.OB) reported a profit for the fourth-quarter that increased 23.3 percent from last year, led by display and memory chip businesses. Quarterly revenue grew 2.8 percent from the prior year.
Looking ahead, the company expects overall profit to weaken in the first quarter of 2021. The Memory Business will likely continue to be affected by the ongoing strength in the won and costs associated with new production lines, despite solid demand from mobile products and data centers.
For 2021, the company expects a recovery in overall global demand but uncertainties persist over the possibility of recurring COVID-19 waves.
Looking ahead to the first quarter, the company projects market demand for smartphones and tablets to decline quarter-over-quarter amid weak seasonality. However, both revenue and profit for the Mobile Communications Business are expected to rise, driven by flagship model sales on the launch of the Galaxy S21 series and product mix improvement.
In the first quarter, the Company expects the overall TV market to grow year-over-year despite weak seasonal demand.
The company reported that its net Income attributable to the shareholders of the parent company for the fourth-quarter increased 23.3 percent to 6.45 trillion Korean won from 5.23 trillion won in the same quarter last year.
Operating profit for the quarter climbed 26.4 percent year-over-year to 9.05 trillion won.
Consolidated revenue for the fourth-quarter grew 2.8 percent to 61.55 trillion won from last year.
The Display Panel Business posted 9.96 trillion won in consolidated revenue and 1.75 trillion won in operating profit for the fourth quarter. It recorded its highest-ever quarterly earnings, reflecting an ongoing recovery in demand for smartphones and TVs amid an economic rebound during the second half of 2020.
The IT & Mobile Communications Division posted 22.34 trillion won in consolidated revenue and 2.42 trillion won in operating profit for the fourth quarter.
The Consumer Electronics Division, comprised of the Visual Display and Digital Appliances businesses, reported 13.61 trillion won in consolidated revenue and 0.82 trillion won in operating profit for the fourth quarter of 2020.
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