Samsung Electronics Reports Record High Operating Profit in 2017

Samsung Electronics fourth-quarter sales were projected to have jumped 23.8 percent year-on-year to 66 trillion won

Samsung Electronics’ fourth-quarter sales were projected to have jumped 23.8 percent year-on-year to 66 trillion won

"Share prices of Samsung Electronics weighed on the market index, but the correction is expected to be short-lived, considering its operating profit guidance was affected by one-off costs", Seo Sang-young, an analyst at Kiwoom Securities, said.

The South Korean tech giant said in a regulatory filing on Tuesday that its sales also posted a record high of 239-point-six trillion won previous year, up 18-point-seven percent.

For all of 2017, the South Korean tech giant raked in an operating profit of 2.4 trillion won, marking the second-highest performance ever posted by the firm.

However, the figure was below analyst forecasts, which averaged 16.1 trillion won in a survey by Bloomberg News. Samsung also said it expects to gross 66 trillion won in revenue.

Samsung's shares hit record highs in 2017 before sliding in November after Morgan Stanley downgraded the stock citing an expected peak in the memory chips cycle and a slowdown in smartphones. That compares to KRW 9.2 trillion in the fourth quarter of 2016, Samsung said in its preliminary report. However, these losses were offset somewhat by increased demand for organic light-emitting diode, or OLED, screens.

Prices for benchmark memory chips have leveled off after a year of strong gains, limiting the growth that had powered Samsung to record earnings in the past two quarters.

Samsung will likely struggle to replicate this year's success with its memory chip business, however.

As for its other main businesses, Samsung is set to debut its latest flagship smartphone, the Galaxy S9, next month at the Mobile World Congress conference. Ltd. and other rivals to its mobile dominance. This is provided as a service to investors prior to LG Electronics' final earnings results including net profit and details regarding each division which will be announced officially later this month.

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