Samsung Hits Record Profits
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Samsung has reported a net income of 9.64 trillion won (AU$9.34 billion) for 2009, with the company attributing this increase to strong flat screen TV and mobile phone sales, as well as higher prices for memory chips.Vice President and Head of Samsung Electronics’ Investor Relations Team, Robert Yi, said, “Despite the uncertain business environment in 2009, Samsung was able to achieve record revenues and strong profitability based on our technological and marketplace leadership. We see this positive growth and performance flowing on into 2010 as the global economy continues to stabilise.”

According to the report, Samsung has recorded revenues of 39.24 trillion Korean won (AU$38.15 billion) on a consolidated basis for the fourth quarter ending 31 December 2009, which is an 18.9 per cent increase year-on-year.

This fourth quarter result brought Samsung’s full year 2009 revenue to a record 136.29 trillion won (AU$132.15 billion). Its full year 2009 operating profit was 10.92 trillion won (AU$10.59 billion), while its net income on a parent company basis was 9.64 trillion won (AU$9.34 billion).

Samsung has reported that its strong performance in the fourth quarter was supported by improved pricing for memory semiconductors and the seasonal increase in sales of consumer electronics products.

 

The company said that its strong semiconductor business performance was driven by a rise in market prices for memory chips and solid demand. In DRAM, spot prices increased by 25-30 per cent from the beginning of the quarter, supported by strong PC sales.

“Despite traditionally weak seasonality, sales were boosted by demand for high-density chips for smart phones. During the fourth quarter, Samsung also began production of 30-nm-class, 3-bit Multi-Level-Cell NAND chips for the first time in the industry, providing a further technological edge for 2010,” added the company.

Samsung has also recorded flat panel TV unit sales of 10.88 million, exceeding the 10 million mark for the first time in the industry. The sales record represented a 41 per cent increase year-on-year and quarter-on-quarter. With its new line of LED TVs selling strongly, Samsung was also able to meet its sales target of 2.5 million units for the year.

Finally, Samsung’s sales of mobile handsets for the quarter reached 69 million, up 16 per cent year-on-year. This enabled the company to comfortably exceed its 2009 sales target of 200 million units in reaching 227 million units for the full year.

Samsung forecast positive growth across its businesses in 2010, with the continued economic recovery expected to stimulate demand for flat panel TVs, mobile handsets and notebook PCs. The company aims to continue to enhance its cost competitiveness and bolster market leadership across its core businesses.