Samsung Electronics expects a big surge in first-quarter profits. EPA
Samsung Electronics expects a big surge in first-quarter profits. EPA
Samsung Electronics expects a big surge in first-quarter profits. EPA
Samsung Electronics expects a big surge in first-quarter profits. EPA

Samsung expects operating profit to surge 50% in the first quarter


Alvin R Cabral
  • English
  • Arabic

Samsung Electronics, the world's biggest mobile phone manufacturer, expects operating profit to surge about 50 per cent annually to 14.1 trillion won ($11.6 billion) in the first quarter of 2022 as a result of robust demand for semiconductors, according to preliminary earnings guidance it provided on Thursday.

The Seoul-based company, which is due to report its financial results on April 28, projects sales growth of nearly 18 per cent to 77tn won on an annual basis during the first three months of the year. South Korean disclosure regulations do not allow earnings estimates to be offered as a range, and the values therefore represent a median value.

The projected figures are also higher on a quarterly basis at 1.6 per cent (operating profit) and 0.6 per cent (sales).

The forecast makes it Samsung's best first-quarter performance since 2018, when it posted a profit of 15.64tn won, led by the popularity of the Galaxy S9 series.

Samsung did not provide a divisional breakdown in its Thursday guidance.

Shares of Samsung closed down 0.58 per cent in Seoul on Thursday.

The manufacturer of the Apple iPhone's rival Galaxy series, Samsung is also one of the world's top semiconductor makers and has benefited from a surge in demand for chips during a shortage in the industry.

The semiconductor industry enjoyed a record 2021, with sales rising 26 per cent to $555.9bn, its highest annual total yet, the Semiconductor Industry Association (SIA) reported in February.

Chip sales in the fourth quarter alone grew 28 per cent on an annual basis and about 5 per cent on a quarterly basis to $152.6bn.

A record 1.15 trillion semiconductor units were shipped last year, as chip companies increased production to address high demand during the global shortage, the SIA said.

Samsung posted a 53 per cent surge in operating profit and a 24 per cent rise in revenue on record sales in the fourth quarter of 2021. For the full year, profit jumped 43 per cent to 51.63tn won and revenue rose 18 per cent to a record 279.6tn won, mainly because of its booming semiconductor business. A boost in the sales of OLED panels and its foldable smartphones, the Galaxy Fold 3 and Flip 3, also supported profit.

Samsung continues to take all the actions globally to mitigate the impact [of the chip shortage] ... so that we can really cater to the demand of end users
Osman Albora,
senior director of Samsung Gulf's mobile experience division

Samsung has managed to withstand the supply chain shocks that rattled the semiconductor industry and caused a delay in product launches, Osman Albora, senior director of Samsung Gulf's mobile experience division, previously told The National.

“It's felt everywhere, even beyond the tech industry. We have done our role of mitigating that impact, including [with] our supply chain partners, and we have done it well so far,” Mr Albora said.

He did not reveal specific details on what Samsung is doing to deal with the shortage, but said the company “continues to take all the actions globally to mitigate the impact so that we can really cater to the demand of end users, and that demand is significant".

Samsung recently launched its new Galaxy S22 line-up, with the premium Ultra version now featuring a built-in S Pen that continues the legacy of the discontinued Note series.

The new launch is hoped to help the company retain its top spot on global smartphone market share rankings.

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MOUNTAINHEAD REVIEW

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UAE currency: the story behind the money in your pockets
While you're here
UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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Results
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UAE currency: the story behind the money in your pockets
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  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
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Courtesy: Carol Glynn, founder of Conscious Finance Coaching

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Engine: 3.0-litre six-cylinder turbo
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MATCH INFO

Mumbai Indians 186-6 (20 ovs)
Kings XI Punjab 183-5 (20 ovs)

Mumbai Indians won by three runs

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Directed by Ashwiny Iyer Tiwari

Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta

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Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
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SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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The specs

Engine: 2x201bhp AC Permanent-magnetic electric

Transmission: n/a

Power: 402bhp

Torque: 659Nm

Price estimate: Dh200,000

On sale: Q3 2022 

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

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%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Clinicy%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202017%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Prince%20Mohammed%20Bin%20Abdulrahman%2C%20Abdullah%20bin%20Sulaiman%20Alobaid%20and%20Saud%20bin%20Sulaiman%20Alobaid%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Riyadh%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%2025%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20HealthTech%3Cbr%3E%3Cstrong%3ETotal%20funding%20raised%3A%3C%2Fstrong%3E%20More%20than%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Middle%20East%20Venture%20Partners%2C%20Gate%20Capital%2C%20Kafou%20Group%20and%20Fadeed%20Investment%3C%2Fp%3E%0A
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Some of Darwish's last words

"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

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Scoreline

Chelsea 1
Azpilicueta (36')

West Ham United 1
Hernandez (73')

Updated: May 30, 2023, 9:25 AM`