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Samsung Electronics Plans to Make More Than $56 Billion in Operating Profit This Year
Source: ETNews   Editor: Helan   Update Time :2018/1/5 15:30:04

Samsung Electronics is going to challenge itself to make $56.4 billion (60 trillion KRW) in operating profit this year. While it is almost certain that Samsung Electronics made more than $47 billion (50 trillion KRW) in operating profit last year for the first time, it is expected that Samsung Electronics will again set up a new record this year. It is expected that semiconductor markets will continue to boom and that Samsung Electronics will have steady performance throughout its entire businesses such as displays, Smartphones, and home appliances.

According to industries and stock firms, it is estimated that Samsung Electronics will make $255 billion (271 trillion KRW) and $62 billion (66 trillion KRW) in sales and operating profit respectively this year. Both of these values are going to be highest ever in Samsung Electronics’ history.

A thing that is drawing the most attention is an upward trend of Samsung Electronics’ operating profit.

Samsung Electronics made $36.2 billion (38.4981 trillion KRW) in operating profit between the first quarter and the third quarter of 2017, and this amount surpasses its biggest annual operating profit of $34.6 billion (36.7850 trillion KRW) that was made in 2013. It is estimated that Samsung Electronics, which is planning to announce tentative result of its fourth quarter performance on the 9th, made about $15 billion (16 trillion KRW) in operating profit during the fourth quarter of 2017 which is its highest quarterly operating profit ever. It is estimated that its operating profit in 2017 will surpass $50.8 billion (54 trillion KRW).

Stock industries are estimating that Samsung Electronics’ operating profit for 2018 will be 20% more than its operating profit made in 2017. Some of the reasons why stock industries are estimating growth of Samsung Electronics’ performance are continuous booming of semiconductor markets and increase in profitability of its set businesses such as Smartphones and home appliances.

Even until the second half of 2017, there were concerns that this year’s semiconductor markets would be weaker than semiconductor markets in 2017. However most are predicting that booming of semiconductor industries will continue in 2018. Samsung Electronics, which has world’s best competitive edge in semiconductor markets, is estimated to make more than $37.6 billion (40 trillion KRW) in operating profit just from its semiconductor business this year.

It is likely that Samsung Electronics will also make stable performance from its set businesses by strengthening their profitability. Actually Samsung Electronics has been strengthening profitability rather than quantity of its set businesses by emphasizing importance on premium products. It is focusing on Galaxy S and Galaxy Note for its Smartphone business and it is focusing on increasing amount of UHD and large-screen TVs.

“It is estimated that Samsung Electronics’ sales and operating profit in 2018 will increase by 20% compared to its sales and operating profit in 2017.” said Kim Woon-ho who works as a researcher for IBK Securities. “It is predicted that lack of supply of semiconductors will continue unlike some concerns fro markets and that performance of OLED business will improve by 50% compared to 2017 due to increase in supply of flexible OLEDs although situation of LCD industries will be poor.” He also added that Samsung Electronics will make operating profit from IM (IT and Mobile) business in 2018 similar to the one that it made in 2017 as Samsung Electronics revised its strategy based on profitability and that its CE (Consumer Electronics) business will also be based on profitability rather than amount of products it sells.

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