Global electronics giant Samsung Electronics Co said yesterday its fourth-quarter operating profits rose 11 percent from the third quarter to 2.05 trillion won (US$2.2 billion), backed by strong performance in its chip and liquid-crystal-display (LCD) operations.
Compared with a year earlier, the operating profit of the world's largest maker of computer memory chips was down 4 percent.
The results were slightly below market forecasts for 2.1 trillion won but the company was at least back above the 2 trillion won level for the first time since the fourth quarter of 2005.
Net profit rose 7 percent quarter-on-quarter but was down 8.5 percent year-on-year to 2.35 trillion won in the period from October to last month.
"Net income rose above market expectations because of buoyant profitability at the company's overseas operations," the company said in a statement.
Sales were a record 15.69 trillion won in the fourth quarter, up 3 percent from the third and 1 percent from a year earlier.
With the results, the company also announced a plan to buy back 1.8 trillion won (US$1.9 million) of its shares over the next three months to help bolster its price.
The stock, which opened to a strong note following overnight gains on Wall Street, jumped 3.61 percent to 603,000 won as investors welcomed the share buy-back plan and robust outlook for this year.
The benchmark KOSPI index on the Korea Stock Exchange gained 1.69 percent.
For the whole of last year, Samsung operating profits fell 14 percent to 6.93 trillion won as sales climbed 2.6 percent to 59 trillion won.
Vice president Chu Woosik said that key products powered a recovery in overall earnings despite price declines in some categories.
Chu said Samsung expected stable performance in the first quarter with higher demand for DRAM and flat panels from the launch of Windows Vista, the new Microsoft computer operating system.
There should also be a sales increase during the Lunar New Year next month and a recovery of profits in the mobile phone business.
"Our key businesses, such as DRAMs, NAND flash memory chips, LCDs, mobile phones and flat-panel TVs will see growth momentum after the first half [of the year] and we expect significant growth both in revenue and profits in the second half," he said.
As for investment, the company plans to spend 8.10 trillion won this year, down 19 percent from last year.
This figure does not include the 1.1 trillion won investment plan by its US unit in Austin, Texas, and the 0.5 trillion won for its TFT-LCD joint venture with Sony Corp, S-LCD, Chu said.
At the same time, it will beef up its research and development activities in order to maintain its technical lead, with 6.14 trillion won set aside for this year, up 10 percent from last year.
Analysts agreed the company would have a better year next year.
"Its operating profit is expected to grow 20 percent this year as the semiconductor and LCD businesses are expected to perk up in the second half," Lee Moon-han of Tong Yang Investment Bank said.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS