Seoul, Korea –
Samsung Electronics reported higher revenue and operating profit during the
fourth quarter, driven in part by smartphones and LED TVs.
For the fourth
quarter ended Dec. 31, 2011, consolidated revenue was 47.3 trillion Korean won,
a 13-percent increase year on year, while consolidated operating profit was 5.3
trillion won, representing a 79-percent increase year on year.
Consolidated net
profit for the quarter was 4 trillion won.
The fourth-quarter
results brought Samsung’s full-year 2011 revenue to an all-time high of 165
trillion won, up 7 percent from the previous year, the company said.
Full year net
income registered 13.73 trillion won, down 15 percent compared with 2010, while
operating profit was 16.25 trillion won, a 6-percent on-year decline.
Samsung registered
full year 2011 operating profit of 8.27 trillion won, up 90 percent comparedwith
last year. Total sales for fiscal year 2011 also hit an all-time yearly high of
55.53 trillion won, accounting for almost one-third of Samsung Electronics’
total revenue for the year.
Highlighting the
quarterly performance, Samsung’s telecommunications business reported record
quarterly earnings of 17.82 trillion won, up 52 percent from the previous year,
with growth mainly driven by strong sales of Samsung’s Galaxy S II and Galaxy Note.
Operating profit for the telco businesses also hit a record 2.64 trillion won
on-quarter.
“Despite
intensified competition amid the global economic slowdown, our telecommunications
businesses continued to post solid earnings with an enhanced line-up of
high-end smartphones, resulting in higher average selling price. Moreover,
improved profitability and earnings growth of our set businesses, including
smartphones and flat panel TVs, led to our company’s strong earnings,” said
Robert Yi, senior VP and head of investor relations.
In the quarter, Samsung’s
reinforced lineup of LED TVs, including premium models for advanced markets and
region-specific models for emerging markets, has also improved
quarter-on-quarter sales.
The display panel
business recorded an operating loss of 0.22 trillion won on revenue of 8.55
trillion won in the fourth quarter and a sales increase of 19 percent from a
year ago on the back of peak seasonal demand, Samsung said.
For fiscal year
2011, the display panel business posted a 0.75 trillion won operating loss
while posting 29.24 trillion won in revenue.
Samsung said that
despite concerns over a slowdown in sales and a sluggish European economy,
demand remained steady during the traditionally high end-of-year season,
including Black Friday sales in North America, helping the TV panel market to
post a 5-percent on-quarter increase. However, IT panel demand was negatively
impacted due to the flooding in Thailand, declining on-quarter.
On the back of value-added
products such as LED and 3D TVs, Samsung outpaced market growth with a more
than 20 percent increase in TV panel shipments compared with the previous
quarter, the company said.
Smartphone sales were
a main driver in Samsung’s telecommunications businesses – including mobile
communications and telecommunication systems. The unit posted a record
quarterly operating profit of 2.64 trillion won for the period. Fourth-quarter
revenue reached a record 17.82 trillion won, compared with 11.75 trillion won
for the same period of 2010.
All told,
shipments of Samsung smartphones rose by approximately 30 percent in the fourth
quarter, compared with the previous quarter, the company said.
Samsung’s digital
media and appliances businesses, which encompass visual display, digital appliances,
IT solutions, and digital imaging, posted quarterly revenues of 16.96 trillion
won for the October to December period, up 4 percent year-on-year. The
businesses registered an operating profit of 0.57 trillion won in the fourth
quarter.
For the full year
2011, the digital media businesses’ combined revenue totaled 58.92 trillion,
with operating profit up 229 percent on-year to 1.41 trillion won.
Sales of LED TVs
grew strongly during the fourth quarter on traditionally high seasonal demand,
achieving 40 percent growth on-quarter. Against this, Samsung said it outperformed
the market by focusing on sales of premium models, shipping over 55 percent
more LED TVs compared to the previous quarter.
In the digital appliances
market, the company achieved quarter-on-quarter sales growth in developed
markets such as the U.S. and Europe, Samsung said.
