Profit fell 12% year-over-year to 3.01 trillion won.
Samsung has published their Q4 2010 earning, and although revenue and income has seen a bump from previous year, the profit bar missed the expected consensus.
The company posted a Q4 revenue of 41.87 trillion Korean won, up 7% from the same quarter in 2009. The net income was up 13% year-over-year to 3.42 trillion won. The profit, however, fell 12% year-over-year to 3.01 trillion won.
Samsung’s mobile division saw better days which reported a record profit of 1.44 trillion won in the fourth quarter, up 38% year-over-year. The company shipped 80.7 million cell phones in the same quarter. Full year shipments reached 280 million units, up from 23% in 2009.
More information in the press release below.
Samsung Electronics Co., Ltd. today announced revenues of 41.87 trillion Korean won on a consolidated basis for the fourth quarter ended December 31, 2010, a 7-percent increase year-on-year. For the quarter, the company posted consolidated net income of 3.42 trillion won, a 13-percent increase year-on-year. Consolidated operating profit for the quarter was 3.01 trillion won.
In its earnings guidance disclosed on January 7, Samsung estimated fourth-quarter consolidated revenues would reach approximately 41 trillion won with an operating profit of 3 trillion won.
The fourth quarter results brought Samsung’s full year 2010 revenue to an all-time high of 154.63 trillion won, up 13-percent from last year. Net income reached a record high of 16.15 trillion won, up 65 percent compared with the previous year, while operating profit was 17.30 trillion won, also a record.
Samsung’s performance in the fourth quarter continued to be driven by memory semiconductors and strong sales of its cutting-edge smartphones. On a quarter-on-quarter basis, however, profit margins decreased primarily due to weakening pricing for memory semiconductors and LCD panels, as well as price competition in the TV market.
“Despite the difficult business environment including reduced IT demand caused by the economic slowdown, we achieved record-high results both in terms of sales and operating profit in 2010,” said Robert Yi, Vice President and Head of Samsung Electronics’ Investor Relations Team. “However, considering overall business conditions, unlike 2010, we expect the traditional earnings pattern of a weak first half, with a strong second half to return in 2011.”
Samsung expected price competition to intensify in the consumer electronics, IT and mobile device markets in 2011, while major components prices are also forecast to decline. To offset pressures stemming from adverse market conditions, Samsung will focus on the cost competitiveness of its memory semiconductor portfolio, reducing marketing expenses and increasing shipments of high-end smartphones and tablet devices.
Samsung said the forecast continued appreciation of the Korean won during 2011 could have a negative impact on earnings, but the company’s diversified foreign exchange mix would limit the effect of movements in particular currencies.