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Samsung reports lower quarterly earnings for the first time in two years

Posted: , posted by Alan F.

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Samsung reports lower quarterly earnings for the first time in two years
For the first time in two years, Samsung reported lower quarterly earnings. Led by softer sales of smartphones, the Korean tech titan reported operating profits of 8.3 trillion won ($7.7 billion USD) for the quarter. The company took a 800 billion won hit ($745 million USD) to pay a special employee bonus that was given to commemorate the 20th year since Chairman Lee Kun-hee's restructuring, which turned the company around. A stronger won also resulted in fewer won received for each U.S.Dollar in sales, and that removed 700 billion won ($650 million USD) from the bottom line. 

Operating profit for Samsung's gilded-edge mobile division was flat at 5.47 trillion won ($5.08 billion USD), from a year earlier. On a sequential basis, the figures were off 18% from the record 6.47 trillion won ($6 billion USD) operating profit seen in the previous quarter. Analysts blamed strong sales of the Apple iPhone for Samsung's decline in mobile operating profits during the fourth quarter.

With displays earmarked for the Samsung Galaxy S4 sitting in the warehouse collecting dust, Samsung Display saw operating profit decline 90% to 110 billion won ($100 million USD). Samsung's flagship Android phone sold fewer units than estimated, resulting in a number of screens sitting by idly.

source: Reuters

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