Samsung Lcd Plant
Samsung Plant

dpa-ANN/GNA – Samsung Electronics Co announced solid fourth quarter performance on Thursday, but warned that the weak dollar and uncertainties about the novel coronavirus pandemic will likely mean a downbeat first quarter.

However, while Samsung said it expects demand for chips and smartphones to remain strong, it also presented a conservative view on a so-called “super cycle” in the memory chip sector, which many analysts have predicted to start this year.

The South Korean technology giant said its fourth quarter net profit increased 26.4 per cent on the year due to firm demand for chips and displays amid the pandemic.

The world’s leading memory chip and smartphone manufacturer said its net income stood at 6.6 trillion won (6 billion dollars) in the October-December period, compared with 5.22 trillion won a year earlier.

Its operating profit jumped 26.35 per cent on the year to 9.04 trillion won in the fourth quarter, while sales rose 2.78 per cent to 61.55 trillion won.

The figures were in line with its earnings guidance announced earlier this month.

But, on a quarterly basis, Samsung’s fourth quarter earnings were down from the third quarter performance, when it racked up record sales of 66.9 trillion won and an operating profit of 12.3 trillion won.

Samsung cited that weaker memory prices and sluggish consumer products sales, coupled with higher marketing costs and the Korean won’s appreciation against the greenback, dragged down its performance from the third quarter.

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