The Fort Worth Press - Samsung reports 53% jump in profit despite supply chain woes

USD -
AED 3.673042
AFN 68.112673
ALL 94.198378
AMD 389.366092
ANG 1.801814
AOA 913.000367
ARS 1003.850089
AUD 1.538462
AWG 1.8025
AZN 1.70397
BAM 1.877057
BBD 2.018523
BDT 119.468305
BGN 1.877115
BHD 0.376794
BIF 2953.116752
BMD 1
BND 1.347473
BOB 6.908201
BRL 5.801041
BSD 0.99976
BTN 84.384759
BWP 13.658045
BYN 3.27175
BYR 19600
BZD 2.015164
CAD 1.39805
CDF 2871.000362
CHF 0.893615
CLF 0.035758
CLP 977.925332
CNY 7.243041
CNH 7.25914
COP 4389.749988
CRC 509.237487
CUC 1
CUP 26.5
CVE 105.825615
CZK 24.326204
DJF 178.031575
DKK 7.158304
DOP 60.252411
DZD 134.27504
EGP 49.650175
ERN 15
ETB 122.388982
EUR 0.95985
FJD 2.27595
FKP 0.789317
GBP 0.798085
GEL 2.740391
GGP 0.789317
GHS 15.795384
GIP 0.789317
GMD 71.000355
GNF 8617.496041
GTQ 7.717261
GYD 209.15591
HKD 7.78445
HNL 25.264168
HRK 7.133259
HTG 131.234704
HUF 395.000354
IDR 15943.55
ILS 3.70204
IMP 0.789317
INR 84.43625
IQD 1309.659773
IRR 42075.000352
ISK 139.680386
JEP 0.789317
JMD 159.268679
JOD 0.709104
JPY 154.770385
KES 129.468784
KGS 86.503799
KHR 4025.145161
KMF 472.503794
KPW 899.999621
KRW 1404.510383
KWD 0.30785
KYD 0.833149
KZT 499.179423
LAK 21959.786938
LBP 89526.368828
LKR 290.973655
LRD 180.450118
LSL 18.040693
LTL 2.95274
LVL 0.60489
LYD 4.882192
MAD 10.057392
MDL 18.23504
MGA 4666.25078
MKD 59.052738
MMK 3247.960992
MNT 3397.999946
MOP 8.015644
MRU 39.77926
MUR 46.850378
MVR 15.460378
MWK 1733.576467
MXN 20.428504
MYR 4.468039
MZN 63.910377
NAD 18.040693
NGN 1696.703725
NIO 36.786794
NOK 11.072604
NPR 135.016076
NZD 1.714237
OMR 0.385039
PAB 0.99976
PEN 3.790969
PGK 4.025145
PHP 58.939038
PKR 277.626662
PLN 4.16352
PYG 7804.59715
QAR 3.646048
RON 4.778204
RSD 112.339038
RUB 104.308748
RWF 1364.748788
SAR 3.754429
SBD 8.383555
SCR 13.693555
SDG 601.503676
SEK 11.036204
SGD 1.346604
SHP 0.789317
SLE 22.730371
SLL 20969.504736
SOS 571.332598
SRD 35.494038
STD 20697.981008
SVC 8.748021
SYP 2512.529858
SZL 18.034455
THB 34.480369
TJS 10.647152
TMT 3.5
TND 3.17616
TOP 2.342104
TRY 34.552504
TTD 6.790153
TWD 32.583504
TZS 2659.340659
UAH 41.35995
UGX 3694.035222
UYU 42.516436
UZS 12825.951341
VES 46.55914
VND 25419
VUV 118.722009
WST 2.791591
XAF 629.547483
XAG 0.031938
XAU 0.000369
XCD 2.70255
XDR 0.760497
XOF 629.547483
XPF 114.458467
YER 249.925037
ZAR 18.15566
ZMK 9001.203587
ZMW 27.617448
ZWL 321.999592
  • RIO

    -0.2200

    62.35

    -0.35%

  • SCS

    0.2300

    13.27

    +1.73%

  • BCC

    3.4200

    143.78

    +2.38%

  • RBGPF

    59.2400

    59.24

    +100%

  • CMSC

    0.0320

    24.672

    +0.13%

  • NGG

    1.0296

    63.11

    +1.63%

  • BCE

    0.0900

    26.77

    +0.34%

  • GSK

    0.2600

    33.96

    +0.77%

  • BTI

    0.4000

    37.38

    +1.07%

  • BP

    0.2000

    29.72

    +0.67%

  • CMSD

    0.0150

    24.46

    +0.06%

  • RELX

    0.9900

    46.75

    +2.12%

  • JRI

    -0.0200

    13.21

    -0.15%

  • RYCEF

    -0.0100

    6.79

    -0.15%

  • AZN

    1.3700

    65.63

    +2.09%

  • VOD

    0.1323

    8.73

    +1.52%

Samsung reports 53% jump in profit despite supply chain woes
Samsung reports 53% jump in profit despite supply chain woes

Samsung reports 53% jump in profit despite supply chain woes

South Korean tech giant Samsung Electronics said Thursday its operating profit rose 53.3 percent in the fourth quarter of 2021, as record sales helped overcome pandemic-induced supply chain challenges.

Text size:

The world's biggest smartphone maker said its operating profit rose to 13.87 trillion won ($11.55 billion) for the October-December period in 2021, up from nine trillion won in the same quarter the previous year.

Thanks to high memory chip prices and strong consumer demand, Samsung had its highest annual sales of 279.6 trillion won in 2021, an 18 percent jump from a year earlier, the company said in a regulatory filing.

Samsung achieved "record sales thanks to competitive products, despite continuing uncertainty," the tech giant said in a statement, singling out solid demand for its premium smartphone lines.

While the Covid-19 pandemic has wreaked havoc on the global economy, it has helped many tech companies boom.

Pandemic-driven working from home has boosted demand for devices powered by Samsung's chips, as well as home appliances such as televisions and washing machines.

The world's biggest memory chip maker, Samsung Electronics has aggressively stepped up investment in its semiconductor business as the world battles chip shortages that have hit everything from cars and home appliances to smartphones and gaming consoles.

The global chip supply shortage is expected to persist well into the new year, analysts have said.

- Growing demand -

"In the Memory Business, demand is expected to grow as enterprises ramp up IT investments while the Company will expand supply of high-performance products," Samsung said.

In November Samsung announced a new microchip factory in Texas, a $17 billion investment. The plant is expected to be operational by the end of 2024.

Samsung is also investing in the development of advanced technologies such as artificial intelligence and robotics, as well as 5G and 6G communications.

Park Sung-soon, an analyst at Cape Investment & Securities, said that memory chip prices were likely to decline in the first half of 2022.

"Samsung's profit is likely to dip for the January-June period. But we also expect chip prices to turn around in the second half, giving a boost to company profits," he said.

"We had forecast around a 10 percent fall in chip prices in the first months of 2022 but it appears now that the decline scope will be smaller with solid demands for PCs and improved supply chains."

Consumer demand for high-end products, such as foldable phones, also helped to further boost profits around the holiday season.

Samsung said it expected the smartphone and premium television market to grow in the third year of the pandemic, though it anticipated sustained "uncertainties triggered by COVID 19 and supply and logistics issues".

Operating profits generated from Samsung's semiconductor business accounted for over 63.7 percent of the Q4 total, illustrating the major role the division plays in the sprawling group.

Samsung's operating profit from the semiconductor division stood at 8.8 trillion won for the October-December period.

Samsung Electronics is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled empires known as chaebols that dominate business in South Korea.

The conglomerate's overall turnover is equivalent to around one-fifth of South Korea's gross domestic product.

Samsung Electronics' record sales last year came as Lee Jae-yong, the firm's vice-chairman and the de facto leader of the wider Samsung conglomerate, returned to management on parole release from prison last August.

Lee had spent over half of a two and a half year sentence for bribery, embezzlement and other offences in connection with a corruption scandal that brought down ex-South Korean president Park Geun-hye before his release.

His return to management has eased concerns over decision-making at Samsung.

L.Davila--TFWP