Samsung posts record Q4 profit amidst FY 2017 results - TechSource International - Leaders in Technology News

Samsung posts record Q4 profit amidst FY 2017 results

Samsung's semiconductor division drove fourth-quarter earnings backed by strong demand for its memory chips.
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Samsung posted KRW 65.98 trillion in consolidated revenue and KRW 15.15 trillion in operating profit for the Q4 of 2017.

Samsung posted KRW 65.98 trillion in consolidated revenue and KRW 15.15 trillion in operating profit for the Q4 of 2017.

Samsung Electronics on Wednesday posted KRW 65.98 trillion in consolidated revenue and KRW 15.15 trillion in operating profit for the fourth quarter of 2017. Overall, the company reported full-year revenue of KRW 239.58 trillion and full-year operating profit of KRW 53.65 trillion.

The South Korean tech titan said the fourth quarter earnings were driven by the components business, with the largest contribution coming from the Memory business that manufactures DRAM and NAND, as orders for high-performance memory products for servers and mobile storage were strong, Samsung said in a press release.

In recent years, Samsung's semiconductor business has turned out to be a major earnings driver. 

As indicated in Samsung’s preliminary earnings announcement in early this year, operating profit was affected by the appreciation of the Korean won against the U.S. dollar and other major currencies, with the impact amounting to approximately KRW 660 billion QoQ. A one-off incentive paid to employees of the semiconductor division also affected earnings.

Looking ahead, the company said, despite being a traditionally slow season, the first quarter is expected to show strong demand for memory products used in data centres. Shipments of System LSI products are forecast to pick up, as orders for APs and image sensors for flagship devices are expected to improve.

In recent years, Samsung's semiconductor business has turned out to be a major earnings driver. Posting an operating profit of nearly 11 trillion won for the December quarter, the company said the demand for high-density memory products for cloud servers and for chipsets required for automotive electronics and AI is expected to increase. Further, the tech major said it will boost its technology competitiveness with cutting-edge processes and solutions with next-generation packaging.