FX.co ★ Samsung Q4 Profit Climbs

Samsung Electronics Co Ltd (SMSN.L, SSNNF.OB, SSNLF.OB) announced a significant 25.77% rise in its fourth quarter net income attributable to shareholders, reaching 7.58 trillion won, up from 6.02 trillion won in the previous year. However, compared to the third quarter's reported 9.78 trillion won, net income saw a decline of 22.55%. Entering the first quarter of 2025, the company anticipates limited earnings improvement, primarily due to challenges in the semiconductor sector. Samsung plans to counterbalance this with efforts to expand its smartphone market share through offerings enhanced with unique AI capabilities, alongside bolstering its premium product lineup within the Device eXperience (DX) Division.

Forecasting into early 2025, the company expects earnings growth to remain muted, affected by weak mobile demand and fixed-cost pressures due to reduced production capacity utilization. Samsung aims to strengthen its technological edge and product offerings in AI for the entirety of 2025, addressing future high-value product demand and pushing for greater sales in premium categories.

The year 2025 should see a slight upturn in the global TV market, particularly in emerging markets. Additionally, recovery in memory market demand is projected to begin in the second quarter. In response, Samsung's Memory Business is reducing its legacy DRAM and NAND products, aligning with current market needs, and accelerating the transition to advanced technology nodes.

Samsung's operating income for the fourth quarter showed a robust increase to 6.49 trillion won from 2.82 trillion won a year earlier. Sales for the quarter rose by approximately 11.82%, reaching 75.79 trillion won, compared to 67.78 trillion won in the previous year. The Device Solutions Division achieved a consolidated revenue of 30.1 trillion won and an operating profit of 2.9 trillion won in the fourth quarter of 2024.