Samsung tips record Q4 profit

Seoul - Samsung Electronics said on Friday it expects a record operating profit in the fourth quarter of 5.2 trillion won ($4.5bn), up 73% year-on-year thanks mainly to strong smartphone sales.

The South Korean firm, the world's largest maker of flat panels, memory chips, flat screen televisions and smartphones, was publishing its earnings guidance before official results expected later this month.

It estimated sales of 47 trillion won in October-December, a 12% rise from a year earlier.

For the full year in 2011, Samsung said it expects operating profit of 16.2 trillion won on record sales of 164.7 trillion, up 6.5% from the previous year.

The company gave no details in its earnings guidance and did not predict net profit. It said estimates may differ from the results because it has not completed an audit.

Analysts cited by Dow Jones Newswires said the company benefited from better sales of cellphones and high end televisions in the fourth quarter, despite falling prices for chips and flat panels.

They said the recent sealing of a deal to sell Samsung's hard disk drive business to Seagate Technology for $1.4bn in cash and shares also boosted overall income.

In the third quarter, the company achieved an operating profit of 4.25 trillion won on sales of 41.27 trillion.

Samsung overtook US rival Apple in the third quarter to become the world's largest seller of smartphones. It sold 27.8 million smartphones during the quarter compared to Apple's 17.1 million, according to market researcher Strategy Analytics.

The two firms have been waging a global battle over smartphone and tablet patents, with around 30 lawsuits in 10 countries since April last year. But Friday's figures suggested the legal tussle had not significantly affected the Korean firm's sales.

"Samsung's fourth-quarter smartphone shipments are estimated at around 35 million units, which means it will continue to keep its top spot," said Lee Ka-Keun, an analyst at Hana Daetoo Securities.

Despite the uncertain global economic outlook, analysts expect Samsung to achieve record sales this year.

They said synergies between its mobile devices and its component businesses would boost growth in sales of mobile processing chips and ultra-thin flat displays.

Samsung Electronics, the world's largest technology company by revenue, employs some 190 500 people in 206 offices across 68 countries.

Its chairperson Lee Kun-Hee, in a New Year speech to employees on Monday, said the firm would focus this year on developing new products and tapping into new businesses to stay ahead of competitors amid the global slowdown.

"Samsung's future lies in new businesses, new products and new technologies," he said, stressing the need for "increasing investment and jobs and focusing on exports".


* Follow Fin24 on FacebookTwitter and Google+.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
17.13
-0.2%
Rand - Pound
20.64
+0.4%
Rand - Euro
17.86
-0.2%
Rand - Aus dollar
11.47
+0.6%
Rand - Yen
0.12
-0.3%
Gold
1,748.23
-0.6%
Silver
21.16
-1.4%
Palladium
1,842.00
-0.8%
Platinum
992.50
+0.9%
Brent Crude
83.63
-2.0%
Top 40
66,994
+0.4%
All Share
73,368
+0.3%
Resource 10
70,795
-0.9%
Industrial 25
88,376
+1.2%
Financial 15
16,389
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders