Samsung Electronics expects Q4 operating profit to jump 63.8 pct


Samsung Electronics expects Q4 operating profit to jump 63.8 pct

The results were below analysts' expectations.

The firm's financial performance has soared on the back of demand for its memory chips and full-year operating profits were projected at 53.6 trillion won, or $50.4 billion - also a record. Total annual sales of nearly KRW 61.4 trillion is expected to be 10.9 percent higher year-over-year and operating profit of KRW 2.4 trillion will see an increase of 84.5 percent over 2016, according to LG.

The strong won and a end-year bonus for staff in the semiconductor business are expected to have dented fourth-quarter profit by about 400 billion won and 400-500 billion won respectively, two analysts said.

The company posted an operating loss for the mobile division for the 10th consecutive quarter as of the July-September period.

The projection also marks Samsung's third record quarterly operating profit in a row.

The company is set to release its final earnings report later this month.

Lee Seung-woo, a researcher at Eugene Investment and Securities, expected Samsung to continue with solid earnings in the first-quarter of this year, though the strong Korean won versus the USA dollar could be a drag.

LG Electronics said Monday its earnings are estimated to have turned to the black in the fourth quarter of 2017, fueled by robust sales of home appliances and premium TVs.

The operating profit estimates fell short of the market consensus of 471 billion won.

Analysts expect Samsung's display profits to grow this year thanks to sales of organic light-emitting diode (OLED) screens for Apple iPhones as well as Samsung's own handsets.

This photo taken on January 9, 2018, shows South Korea's largest conglomerate Samsung's offices in Seoul.