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Samsung sees 52.8% drop in 2019 operating profit

Jan 30. 2020
(Yonhap)
(Yonhap)
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By The Korea Herald/ANN

Samsung Electronics posted a 52.84 percent on-year decline in operating profit for 2019, according to an earnings report released Thursday. 

The South Korean tech giant recorded 230.4 trillion won ($194.85 billion) in sales last year, down 5.48 percent from a year earlier, while obtaining 27.7 trillion won in operating profit. The total net profit stood at 21.7 trillion won, down 50.98 percent. 

The company’s most lucrative business unit, chipmaking, brought in a total of 14 trillion won for the whole year, accounting for 51.8 percent of its total operating profit. That figure had plunged from around 80 percent over the past two to three years. 

The company’s mobile business division earned 9.27 trillion won in total. The consumer electronics division brought in 2.61 trillion won, the data showed. 

In the final quarter of 2019, Samsung posted 59.88 trillion won in sales and 7.16 trillion won in operating profit, a slight improvement from the previous quarter. 

Samsung said in a statement that its fourth quarter profit had dropped 33.7 percent compared with the same period in 2018 due to the continued fall in memory chip prices and weakness in display panels. 

But improving demand for memory in servers and mobile products, as well as solid sales of flagship smartphones, mitigated the decline in its overall earnings, according to the company. 

Of the 7.16 trillion won Q4 profit, the semiconductor division accounted for 3.45 trillion won, the mobile business division 2.52 trillion won and the consumer electronics division 0.81 trillion won. 

By Song Su-hyun ([email protected])

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