Samsung Electronics posts biggest operating profit in 2017

Samsung Electronics posts biggest operating profit in 2017

Samsung Electronics posts biggest operating profit in 2017

This comes after the consumer electronics company recorded an operating loss of 35.2 billion won over the same period a year earlier, LG Electronics said in a regulatory filing.

Samsung said it expects its operating profits for the 2017 full year to hit 53.6 trillion won and to post full-year sales of 239.6 trillion won. That compares to KRW 9.2 trillion in the fourth quarter of 2016, Samsung said in its preliminary report.

Sales are estimated to have increased 14.8 percent over the cited period to 16.9 trillion won, it added.

Tech shares had a bearish day ahead of the earnings season as analysts raised concerns over the impact of a stronger won and lower chip prices on major exporters.

For 2018, it has issued a tempered forecast: analysts predict computer chip prices to drop and there is some doubt about Samsung's smartphone division, because of increased Chinese competition. The tech giant is expected to elaborate on the results in its finalized report, which will be delivered later this month.

The operating profit estimate fell short of the market consensus of 471 billion won compiled by Yonhap Infomax, the financial arm of Yonhap News Agency, through a survey of 17 brokerage houses. The local currency has been appreciating for months amid the global trend of the weakening USA greenback.

It's worth noting that market analysts expected to see a stronger quarterly performance from LG.

LG did not offer a net profit estimate for the fourth quarter, nor breakdowns for each segment.

Hanwha Investment & Securities also said Samsung's business conditions will remain solid even if the fourth-quarter earnings hover below market expectations, attributing the results to one-off costs, such as special bonuses paid out to staff following robust returns.

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