Beleaguered Samsung warns of tough 2016 after 4Q profit plunges 40%
“Samsung Electronics reported Thursday a bigger-than-expected decline in fourth quarter earnings as its mainstay smartphone and semiconductor businesses suffered from weakening global demand for consumer electronics,” Youkyung Lee reports for The Associated Press. “The South Korean company also warned a recovery in profit is unlikely during the first half of this year due to a tough business environment.”
“Samsung’s net profit for the October-December period plunged 40 percent from a year earlier to 3.2 trillion won ($2.7 billion),” Lee reports. “The result fell short of expectations, even after considering the negative impact from foreign currency exchange rates estimated at 400 billion won. A survey of analysts by financial data provider FactSet forecast net profit of 5.1 trillion won.”
“The latest results reflect additional challenges for Samsung as its semiconductor business, which helped offset declining earnings from smartphones since mid-2014, joined the mobile division in a profit slowdown,” Lee reports. “For the full year, it earned 19.1 trillion won ($15.8 billion), down 19 percent from the previous year and the lowest level in four years. It was the second year in a row with a decline in annual net income… The mobile phone business posted its second straight quarterly profit decline with 2.2 trillion won in operating income.”
