Samsung Electronics sees weaker first-quarter after quarterly profit jump By Reuters

By Joyce Lee and Heekyong Yang

SEOUL (Reuters) – Samsung Electronics (OTC:) Co Ltd posted a 26% soar in quarterly working revenue on Thursday, however stated it expects a weaker end result this quarter as a result of impression of a powerful gained on its reminiscence chip enterprise and the price of new manufacturing strains.

Samsung (KS:), the world’s prime maker of reminiscence chips, stated it nonetheless anticipated stable demand for its cell merchandise and in its information facilities enterprise, however pointed to ongoing considerations concerning the impression of the worldwide pandemic.

“Wanting forward, Samsung Electronics expects general revenue to weaken within the first quarter of 2021,” the corporate stated in a press release.

“For 2021, (Samsung) expects a restoration in general world demand however uncertainties persist over the potential for recurring COVID-19 waves,” it added.

The soar in working revenue within the October-December quarter got here as sturdy reminiscence chip shipments and show income offset a powerful gained, the price of a brand new chip manufacturing line, weaker reminiscence chip costs, and a quarter-on-quarter drop in smartphone shipments.

The marketplace for DRAM chips that go into gadgets is anticipated to get well through the first half of 2021 from cell and server purchasers’ demand, Samsung stated.

Samsung’s fourth-quarter working revenue rose to 9.05 trillion gained ($8.17 billion), from 7.2 trillion gained a yr earlier, according to the corporate’s estimate earlier this month.

Income on the world’s prime maker of reminiscence chips and smartphones rose 3% to 61.6 trillion gained. Web revenue rose 26% to six.6 trillion gained.

Samsung’s capital expenditure in 2020 reached 38.5 trillion gained, together with 32.9 trillion gained on semiconductors. Funding in chip contract manufacturing jumped as the corporate expanded a manufacturing facility. Reminiscence chips noticed vital spending progress for capability growth and superior course of, it stated.

Analysts stated Samsung’s show unit reported its highest working revenue in not less than 4 years within the December quarter as supplying panels for Apple (NASDAQ:)’s new iPhone saved its OLED manufacturing close to 100% of capability through the quarter.

($1 = 1,115.2000 gained)