Samsung Electronics Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 2016; Provides Earnings Guidance for the First Quarter of 2017
January 24, 2017 at 02:07 am
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Samsung Electronics announced consolidated earnings results for the fourth quarter and full year ended December 2016. For the quarter, the company reported KRW 7.1 trillion in net income compared with KRW 3.2 trillion a year earlier. Total revenue was KRW 53.3 trillion total revenue increased by 12%. The gross profit was KRW 22.4 trillion, up KRW 3.1 trillion year-over-year. The operating profit increased by KRW 3.1 trillion year-on-year to KRW 9.2 trillion. Fourth quarter earnings were driven by the components businesses, mainly the Memory business and the Display
Panel segment, which manufactures OLED and LCD screens.
For the year, the company's revenue was KRW 201.87 trillion. Operating profit was KRW 29.24 trillion. Annual free cash flow came in at approximately KRW 24.9 trillion. Company invested KRW 25.5 trillion in capital expenditure, KRW 9.8 trillion for display and KRW 13.2 trillion for semiconductors. The annual the actual CapEx was slightly lower than previous guideline of KRW 27 trillion, mainly due to the fact that some of the year-end investments in Display business were carried over to 2017.
For the first quarter of 2017, the company expects, overall company earnings to decline quarter-on-quarter as earnings in the set business are projected to decline resulting from increased marketing expenses in the Mobile business and sales decreases of TVs due to weak seasonal demand. Profit to slightly decrease quarter-on-quarter due to increased expenses, including marketing-related spending, to enhance market presence. A slight impact in sales revenue as a result of adjustment in selling price in response to the fluctuation in panel prices, will focus on profitability by introducing latest lineups earlier while promoting sales increase in the premium product category.
Samsung Electronics Co Ltd is Korea-based company principally engaged in the manufacture and distribution of electronic products. The Company operates its business through four segments. The Information Technology & Mobile Communications (IM) segment manufactures computers, handhold phones (HHPs), network systems, digital cameras and others. The Device Solutions (DS) segment provides semiconductor and display parts, including dynamic random access memories (DRAMs), flashes, thin film transistor-liquid crystal displays (TFT-LCDs) and others. The Consumer Electronics (CE) segment manufactures color televisions (CTVs), monitors, printers, air conditioners, refrigerators, laundry machines and others. The Harman segment manufactures headunits, infotainment, telematics, speaker, among others. The Company distributes its products within domestic market and to overseas markets.
Samsung Electronics Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 2016; Provides Earnings Guidance for the First Quarter of 2017