Samsung Expects Operating Profit Surge in Q4
Samsung predicted another increase in operating profit despite modest revenue gains in 4Q20. The COVID-19 pandemic fuelled growth in semiconductor demand, pushing Samsung's sales up.
The smartphone giant forecast operating profit to increase 25.7 percent year-on-year to KRW9 trillion ($8.2 billion) and consolidated sales to rise 1.9 percent to KR61 trillion. Analysts said its chip business led the strong performance despite falling memory chip prices, while its mobile business declined due to lockdowns in Europe.
The company didn’t breakdown figures by division or reveal net profit: it is due to report full-year earnings later in the month. In Q3, net profit surged 52 percent year-on-year to KRW9.27 trillion and operating profit rose 57.7 percent to KRW12.35 trillion. Revenue rose 8 percent to KRW66.96 trillion, driven by gains in the mobile and semiconductor sectors.