Another increase in profit: Samsung predicts a strong final quarter

Share your love

The high demand for chips for data centers brought strong growth to the South Korean consumer electronics group Samsung in the final quarter of 2021. In its earnings outlook for the fourth quarter, Samsung anticipates an increase in operating profit of 52.5 percent year-on-year and quarterly revenue in a record high. The profit from the core business is expected to amount to 13.8 trillion won, about 10.2 billion euros, announced Samsung on Friday. However, the figures are still preliminary. Final results are expected on January 27, 2022.

In terms of sales, Samsung expects an increase of 23.5 percent to 76 trillion won, about 55.9 billion euros. Already the revenue of 74 trillion won in the months of July to September meant a quarterly record for the company. Samsung has not yet given any further details, such as the individual lines of business.

Above all, the semiconductor business is said to have grown significantly recently due to the strong demand from data centers. According to market observers, Samsung also benefited from the fact that the decline in average sales prices for DRAM memory chips and NAND flash memory was less than expected. Samsung’s earnings estimate was still below market expectations. Analysts had previously forecast an operating profit of around 15 trillion won.

The estimates for the fourth quarter also include a one-time special bonus for all employees, it said. According to its own information, Samsung Electronics employs a total of almost 268,000 people worldwide (as of December 2020).

If the business figures for the fourth quarter are confirmed as predicted, Samsung will achieve another record financial year. In the second year of the coronavirus pandemic, sales will be 279 trillion won, 18 percent higher than 2020. At 51.6 trillion won, operating profit would be the highest since 2018.

Read Also   This flying car manages to fly 80 km in 35 minutes, and takes 2 to 'transform'


(olb)

Article Source

Share your love