Published: Wed, January 31, 2018
Sci-tech | By Brandy Patterson

Samsung Electronics' operating profit hits record high in Q4

Samsung Electronics' operating profit hits record high in Q4

Operating profit was 15.15 trillion won (14.13 billion USA dollars) in the October-December quarter, up 64.3 percent from a year earlier.

Samsung Electronics said operating profits in semiconductor businesses came to 35.2 trillion won in the fourth-quarter, accounting for 65.6 percent of its total operating profit in the cited period. It was slightly higher than analysts' consensus of 11 trillion won, according to financial data provider FactSet. Operating profit is in line with Samsung's earnings guidance released earlier this month, which estimated operating profit at 15.1 trillion won.

Earlier this month, Samsung had said it would likely report a record quarterly profit of 15.1 trillion won, but the guidance fell short of consensus estimate at the time, sending shares down as investors anxious if this indicated that the memory chip boom could be ending sooner rather than later. Profit from its mobile division dropped as Samsung increased marketing spending to promote Galaxy phones, while television and display divisions posted small gains.

Samsung Electronics' operating profit hits record high in Q4
Samsung Electronics' operating profit hits record high in Q4

Led by a stellar fourth quarter, the company brought home an annual profit of 53.7 trillion won in 2017, outstripping a record of 36.8 trillion won reached in 2013.

Profits have not suffered from the vice chairman's bribery conviction.

Samsung's run of strong profit is not about to stop any time soon.

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Samsung Electronics Co. said Wednesday that it has chose to dramatically lower the face value of it stocks, as it posted record highs in sales and operating profits in the fourth quarter on rising chip demand.

The company dispelled views that the memory chip industry may have passed its peak after impressive growth previous year.

The chip business was Samsung's top earner past year.

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Samsung expects this strong demand to remain stable throughout 2018 as a result of the need to supply of new data centers as well as high-end mobile manufacturers, and plans to continue to strengthen its production to meet the expected demand.

Following earnings reports, Samsung announced a 50:1 stock split that would make its high-priced stocks more accessible and increase the trading volume.

The company on Wednesday also announced a year-end dividend of 21,500 won per share as part of its previously-announced shareholder return policy.

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