Samsung Electronics Co. Ltd. (SSNLF.PK, SSNNF.PK) Friday reported a profit for the fourth quarter, helped by higher sales of chips and handsets. Looking ahead, the company issued an optimistic outlook for 2010, expecting an increase in demand for DRAM and NAND chips and LCD televisions.
The South Korea-based company reported fourth-quarter net income, on parent basis, of 3.05 trillion won, compared to a loss of 20 billion won in the year-ago period. For the third quarter, the company's net income, on parent basis, was 3.72 trillion won.
Sales for the fourth quarter, was 25.324 trillion won on a parent basis, compared to 18.45 trillion won last year. Domestic sales for the latest period were 3.844 trillion won and Export generated 21.481 trillion won. Semiconductor sales were 6.89 trillion won, with Memory sales of 4.37 trillion won. The company noted that price increase continued in DRAM, led by strong seasonal demand, while in NAND, demand for high-density embedded products remained strong.
LCD sales were 5.72 trillion won, compared to 6.01 trillion won in the third quarter. Samsung said strong set sales in China and developed markets resulted in panel inventory reduction in the market and there was limited supply due to glass shortage. Further, fourth-quarter shipment remained flat from the previous quarter, due to strong notebook and TV panel sales.
Sales from Telecom was 9.11 trillion won, where wireless sales were 7.27 trillion won. The company shipped 68.8 million units of handsets during the period, up 14% from last quarter and 31% year-on-year.
Digital Media sales were 3.50 trillion won, with a contribution of 1.53 trillion won from Appliances.
On a consolidated basis, sales for the just concluded quarter was 39.24 trillion won. Semiconductor sales were 8.02 trillion won and LCD sales were 6.34 trillion won. Telecom brought in 11.57 trillion won to total sales and Digital Media sales for the quarter was 14.68 trillion won.
Sales for the third quarter were 24.86 trillion won on parent basis, and 35.87 trillion won on consolidated basis.
Operating profit, on a parent basis, was 2.367 trillion won, and on consolidated basis, was 3.70 trillion won. On consolidated basis, Semiconductor's quarterly operating profit was 1.70 trillion won and LCD's 0.53 trillion won. Telecom reported operating profit of 0.99 trillion won and Digital Media's operating profit was 0.47 trillion won. On a parent basis, Digital Media reported an operating loss of 0.37 trillion won.
Earlier this month, Samsung had said it expects operating profit for the fourth quarter, on a consolidated basis, to be 3.7 trillion won. Consolidated sales for the quarter were estimated to be 39.00 trillion won.
For the full year, on a parent basis, the company reported net income of 9.65 trillion won, up from 5.53 trillion won in the prior year. Parent basis operating profit for the year was 6.35 trillion won, compared to 4.13 trillion won last year.
Full-year sales, on a parent basis, increased to 89.773 trillion won from 72.953 trillion won in the prior year. On a consolidated basis, sales for 2009 increased to 136.29 trillion won from last year's 118.38 trillion won.
Among peers, LG Electronics, Inc. (LGERF.PK) Wednesday reported a profit for the fourth quarter, reflecting a hefty equity method gain. Sales, on a global basis, grew 6.8% helped mainly by rising demand especially for LCD TVs and Plasma TVs.
Looking ahead, Samsung said it expects strong demand for LCD in 2010 due to economic recovery, emerging market growth, and major sporting events. The company added that it anticipates strong demand in the first quarter despite seasonality.
In DRAM, demand is expected to remain strong throughout 2010 with increased adoption of Window7 and Corporate PC replacement demand in the second half. NAND is expected to experience strong demand from smart phones and new application products with limited increase in supply. In the first quarter, stronger than typical demand is expected due to Chinese New Year holidays.
The company expects a 10% growth in handset market in 2010, while first-quarter demand is likely to decline due to seasonal weakness. According to IDC's Worldwide Mobile Phone Tracker, which was released today, mobile phone market is expected to rebound in 2010.
LG said early this week that it expects year-over-year growth in profitability in 2010, driven by premium products in home entertainment and home appliances, and also sees improved demand as the global economy begins to emerge from recession.
Chipmaker Intel Corp. (INTC) recently reported an 875% surge in fourth-quarter profit, as revenue increased and margins improved amid a strong rebound in the global PC market. The company also guided first-quarter sales above Wall Street view.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.