Samsung has predicted another increase in operating profit despite modest revenue gains in Q4 2020, as the Covid-19 (coronavirus) pandemic fueled growth in semiconductor demand.
The smartphone giant forecast operating profit to increase 25.7 per cent year-on-year to KRW9 trillion ($8.2 billion) and consolidated sales to rise 1.9 per cent to KR61 trillion (US$910 million).
Analysts said Samsung’s chip business led the strong performance despite falling memory chip prices, while its mobile business declined due to lockdowns in Europe, Yonhap News Agency reported.
The company didn’t breakdown figures by division or reveal net profit: it is due to report full-year earnings later in the month.
In Q3, net profit surged 52 per cent year-on-year to KRW9.27 trillion (US$8.44 billion) and operating profit rose 57.7 per cent to KRW12.35 trillion (US$11.24 billion).
Revenue rose 8 per cent to KRW66.96 trillion (US$60.934 billion) driven by gains in the mobile and semiconductor sectors.