Samsung reports earnings record in 2010

28 Jan 2011

Samsung Electronics Co. has announced revenues of 41.87trn Korean won on a consolidated basis for Q4 2010, a 7pc increase year-on-year.

The company posted consolidated net income of 3.42trn won for the quarter, a 13pc increase year-on-year. Consolidated operating profit for the quarter was 3.01trn won.

Samsung had estimated fourth-quarter consolidated revenues would reach about 41trn won with an operating profit of 3trn won.

The fourth-quarter results brought Samsung’s full-year 2010 revenue to an all-time high of 154.63trn won, up 13pc from last year. Net income reached a record high of 16.15trn won, up 65pc compared with the previous year, while operating profit was 17.30trn won, also a record.

Memory semiconductors and strong sales of smartphones drove Samsung’s performance in the fourth quarter. 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.”