[Asia Economy Reporter Han Yeju] Samsung Electronics has been hit hard by the memory semiconductor downturn and the global decline in demand for home appliances and IT products. Its operating profit in the fourth quarter of last year fell to about one-third of the same period the previous year. However, its annual sales surpassed 300 trillion won for the first time in history.
Samsung Electronics announced on the 6th that its fourth-quarter sales last year were 70 trillion won, and operating profit was 4.3 trillion won on a preliminary basis. Compared to the previous quarter, sales decreased by 8.83% and operating profit by 60.37%, while compared to the same period last year, sales fell by 8.58% and operating profit by 69%. This fell short of the securities market consensus of 72.7531 trillion won in sales and 6.9254 trillion won in operating profit.
Annual sales last year reached 301.77 trillion won, and operating profit was 43.37 trillion won. This is the first time Samsung Electronics has surpassed 300 trillion won in annual sales. It is the best performance since Samsung Electronics was founded and the first such achievement in the history of Korean companies. However, the annual results also fell short of the securities market forecasts of 304.751 trillion won in sales and 46 trillion won in operating profit.
Although business segment results were not disclosed on this day, it is interpreted that profits sharply declined due to difficulties in the semiconductor business. As the global economic recession has led to a full-scale entry into the 'semiconductor downcycle,' the profitability of the memory semiconductor business, which had driven Samsung Electronics' overall performance, has significantly deteriorated. Additionally, the impact of the consumption downturn has greatly reduced the performance of smartphones and home appliances.
Meanwhile, the preliminary results are estimates based on the Korean International Financial Reporting Standards (IFRS) and are provided to assist investors while the settlement has not yet been completed. The finalized results are scheduled to be announced on the 31st.
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