Samsung forecasts weaker earnings ahead after Q4 slump

2018 has been a good year for Samsung Electronics,
with its sales hitting an all-time high. But when focusing on just the fourth quarter,
earnings took a sharp dive. Its local rival LG Electronics also released
its earnings. Kim Ji-yeon breaks down the tech giants’ digits
for us. Korean tech giant Samsung Electronics says
its sales and operating profits both hit a yearly all-time highs in 2018 thanks to a
semiconductor boom that lasted until the third quarter last year… but it forecasts weaker
earnings for this year on slowing chip demand. On Thursday, the company said its combined
sales for 2018 amounted to 219-point-3 billion U.S. dollars… some 2 billion dollars more
than its preliminary estimate released earlier in January. Operating profits for 2018 came to nearly
53 billion dollars,… which is zero-point-6-billion dollars less than its earlier estimate…
but is still a record high. Its operating profits in the fourth quarter
of last year were similar to the preliminary estimate of 9-point-7 billion dollars… which
is a 28-point-7 percent drop from the previous year. Sales during the October-to-December period
last year were slightly up from the previous estimate at 53-point-3 billion dollars,…
a 10-point-2-percent drop on-year. Samsung said the disappointing Q4 earnings
are mainly due to global chipmakers adjusting their inventories and its main clients cutting
their orders. The company says it expects overall annual
earnings to decline this year, although sales of memory products and OLED panels are expected
to pickup in the second half. Its memory and processor chips account for
more than 70 percent of overall profit. Meanwhile, operating profits for the company’s
IT and mobile unit shrunk by around 3-point-7-percent on-year in Q4 to one-point-four-billion dollars…
while sales increased eight-percent to 21-billion dollars. Local rival LG Electronics also posted its
earnings report for 2018. Although its mobile unit slumped,… the company’s
home appliances and TV units helped increase operating profits by 9-and-a-half-percent
to 2-point-4-billion dollars for the entirety of last year… while yearly sales remained similar to that
of the previous year surpassing 55-billion dollars. Kim Ji-yeon, Arirang News.

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