Samsung files quarterly report: declares $8.3 billion profit
updated 09:06 pm EST, Thu January 24, 2013
Continued weakness in DRAM, computer industry cited
Samsung Electronics today announced quarterly revenues of 56.06 trillion Korean won ($52.7 billion) on a consolidated basis for the fourth quarter ended December 31, a seven percent increase from the same time period in 2011. Consolidated operating profit for the quarter hit $8.3 billion, and consolidated net profit for the same quarter was $6.6 billion. The results met Samsung's estimates provided earlier this month of $8.3 billion.
Samsung's Mobile Communications division generated revenues of $25.6 billion, driven by Galaxy S III and Note II sales. Persistent weak demand for PC DRAM affected Samsung's bottom line, but was somewhat offset by server and mobile DRAM channel improvements. The IT and Mobile Communications department posted profits of $5.1 billion on $29.4 billion in revenue.
The display panel segment continued to struggle, as demand for notebook and monitor panels continued to decrease. However, revenue in panels for TVs and smartphones prevented a large loss from the department. Overall, the display panel business generated a profit of $1 billion on revenue of $7.3 billion.
Consumer electronics posted revenue of $13.1 billion for the quarter, an increase of 20 percent from the same time period in 2011. Samsung reports the market experienced stronger-than-expected demand for LED televisions, including premium models aimed at advanced markets.
While no specific guidance or projections has been given yet, Samsung expects the next quarter to have moderate growth in emerging markets, with low growth in developed economies. The company expects greater demand for products, but more pressure from the worldwide economic condition on pricing.
