Asharq Al-awsat English https://aawsat.com/english Middle-east and International News and Opinion from Asharq Al-awsat Newspaper http://feedly.com/icon.svg

Samsung Electronics Forecasts 52.5% Jump in Q4 Profits

Samsung Electronics Forecasts 52.5% Jump in Q4 Profits

Friday, 7 January, 2022 - 05:30
Employees of Samsung Group work at the company's headquarters in Seoul April 22, 2008. REUTERS/Jo Yong-Hak

Samsung Electronics expects operating profits for the fourth quarter to soar 52.5 percent, the South Korean tech giant said in a statement on Friday, spurred by record sales.


The world's biggest smartphone maker forecast 2021 fourth-quarter operating profits at around 13.8 trillion won ($11.5 billion), up from 9.05 trillion won in the same quarter last year.


The firm was boosted by record sales in the quarter, estimated at 76 trillion won, up 23.5 percent on-year, according to the statement, which added that the forecast reflected a one-time bonus payment to employees.


A spokeswoman told AFP annual sales in 2021 were also expected to be the highest ever.


The operating profit estimate was below analysts' estimate of 15.2 trillion won, according to Bloomberg News.


"A continued price growth in memory chips that ran three consecutive quarters until October last year has boosted Samsung's profit margins," said Park Sung-soon, an analyst at Cape Investment & Securities.


"The most significant source of income for Samsung lies in the memory chip business."


Samsung Electronics did not provide details Friday on the performance of its various divisions. The firm is expected to release its full results on January 27.


Editor Picks

Multimedia