Samsung fourth quarter net profit off from third quarter

Jan. 24, 2014 at 12:55 AM
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SEOUL, Jan. 24 (UPI) -- Samsung Electronics Co. Friday reported fourth-quarter net profit of 7.3 trillion won ($6.8 billion), down from third quarter's 8.24 trillion won.

The fourth quarter profit decline was partly as a result of one-off expense for special bonuses for the South Korean electronics giant, the world's largest maker of smart mobile phones and television flat screens. In the fourth quarter of last year, the company earned 7.04 trillion won.

Fourth-quarter operating profit was 8.31 trillion won, down from third quarters' 10.16 trillion won and also down from 8.84 trillion won in the fourth quarter of 2012.

Fourth quarter sales totaled 59.28 trillion, up from 59.08 trillion won in the third quarter and from 56.06 trillion won in the fourth quarter of last year.

Samsung's net profit for all of 2013 was 30.47 million, up 27.7 percent from 23.85 trillion won in 2012. Sales for all of 2013 totaled 228.69 trillion won, up from sales of 201.1 trillion won in 2012.

Yonhap News agency quoted analysts as saying South Korea's rising currency also affected Samsung's latest results as they make its products more expensive. Additionally, they blamed higher marketing costs in the face of tougher competition both at home and overseas.

"Amid macroeconomic uncertainties such as a strong Korean won and increased concerns over possible quantitative easing tapering in the U.S., our earnings were lower than what the market expected," Robert Yi, Samsung's senior vice president and head of investor relations, was quoted as saying.

"However, fourth quarter operational results were respectably strong. Looking at the quarterly earnings trend, we expect 2014 to follow last year's pattern of a weak first half and a strong second half as usual."

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