Seoul, South Korea – Flat CE sales and falling mobile sales drove down Samsung’s consolidated global revenues by 11 percent in the fourth quarter to 52.73 trillion won ($50 billion) and for the full fiscal year by 10 percent to 206.2 trillion won ($190 billion.)
Net profit fell 27 percent in the quarter to 5.35 trillion won and for the full year by 23 percent to 23.39 trillion won. The net-profit slump, however, marked an improvement over the third quarter’s 49 percent drop year-over-year.
Consolidated operating profit was down 36 percent to 5.29 trillion won for the quarter and by 32 percent for the year to 25.03 trillion won. On a quarter-over-quarter basis, however, consolidated operating profit rose 30 percent to 5.29 trillion won, with sharp quarter-over-quarter gains posted in the CE and appliance segment and in the IT and mobile communications segment, which consists almost solely of mobile products.
Total CE/appliance revenues in the quarter were flat at 14.27 trillion won and down slightly for the full year by 0.3 percent to 50.18 trillion won. Mobile-segment sales were down 23 percent in the quarter to 25.02 trillion won and down 21 percent for the year to 107.41 trillion won. The company’s device solutions segment, consisting of display panels and semiconductors, posted a 4 percent revenue gain to 17.71 trillion won.
Segment performance, outlook: In the IT and mobile communications segment, the company said earnings improved quarter over quarter despite a “slight decline” in quarter-over-quarter smartphone shipments, thanks to “efficient cost management and [an] increase in revenue from [an] improved product mix.”
Mobile device average selling prices (ASPs) improved in the quarter because of increased high-end sales, mainly driven by Tab 4 sales growth, the company said. Sales of network infrastructure increased because of carriers’ LTE network expansion. Tablet shipments also increased quarter over quarter.
Samsung said it expects smartphone competition to intensify this year, and the company will focus on increasing smartphone shipments with a new product portfolio.
Though year-over-year results in the CE segment were down, quarter-over-quarter shipments and operating profits improved because of increased premium-product sales, the company said. LCD TV shipments rose 46 percent quarter over quarter, curved-TV shipment rose 78 percent, and UHD TV shipments rose 46 percent quarter over quarter.
The company said it expects TV sales to grow this year, driven by UHD TV sets and new display technology.
Appliance earnings improved quarter over quarter because of increased U.S. sales of refrigerators and washers. Specifically, sales of premium refrigerators, consisting of French-door models and food-showcase models, rose 16 percent quarter over quarter and were up 25 percent year over year.
Sales of premium appliances in the U.S. are also expected to grow this year, Samsung said.
Segment operating profits: CE operating profits slipped 72 percent to 180 billion won in the quarter compared to the year-ago quarter, and by 29 percent for the fiscal year to 1.18 trillion won. CE operating profits, however, were up 23 percent quarter over quarter.
In the IT and mobile communications segment, operating profits fell 64 percent to 1.96 trillion won for the quarter and by 42 percent for the year to 14.56 trillion won. They were up 6 percent quarter over quarter.