Samsung announces fourth quarter & FY 2013 results

Lahore: Samsung Electronics Co., Ltd. Friday announced revenues of 59.28 trillion Korean won on a consolidated basis for the fourth quarter ended December 31, 2013, which is an increase of 0.3 percent quarter-on-quarter. For the quarter, the company posted consolidated operating profits of 8.31 trillion won, representing an 18-percent decline Q-o-Q. Consolidated net profit for the quarter was 7.30 trillion won.

In its earnings guidance disclosed on January 7, Samsung estimated fourth quarter consolidated revenues would reach approximately 59 trillion won with consolidated operating profit of approximately 8.3 trillion won.

The fourth quarter results brought Samsung’s full year 2013 revenue to an all-time high of 228.69 trillion won, up 14 percent from the previous year. Year-end net income registered 30.47 trillion won and Samsung netted 36.79 trillion won in operating profit, a 27-percent on-year increase.

In 2013, Samsung maintained its market leadership in mobile devices as evidenced by its smartphone market shares of over 30-percent for both developed and emerging markets, and a two-fold surge in tablet sales from the previous year due to the release of new products such as GALAXY Tab 3 and GALAXY Note 10.1 (2014 Edition). The solid performance is also the result of our efforts to strengthen customer touch-points with shop-in-shop experiences.

As for TV shipments, Samsung saw robust growth in developed markets in the quarter thanks to premium products that boosted growth by 90 percent from the July-September quarter. Orders for 60-inch and larger TVs recorded 80-percent growth while demand for Smart TVs grew by more than 60 percent in the fourth quarter.

Profit margins for Digital Appliances Business remained steady in the quarter led by increased sales of premium products in developed markets.

On the components’ side, inventory adjustments and a retreat in panel price took their toll on the Display Panel segment’s overall earnings but increased shipments of IT and UHD TV panels were a silver lining.

For the Memory business, revenue in the fourth quarter landed in positive territory with cutting-edge process and high-margin DRAM and NAND Flash memory chip products.