Published: Wed, January 10, 2018
Culture&Arts | By Darrell Mcdonald

Samsung had a record-breaking 2017 thanks to its chip business

Samsung had a record-breaking 2017 thanks to its chip business

Based on the guidance, Samsung's full-year operating profit is estimated at 53.6 trillion won, compared with 29.2 trillion won in 2016, putting the tech titan on course for a record annual profit.

Samsung forecasts a fourth quarter profit of 15.1 trillion won (12 billion euro), which is a record result for the company and almost two thirds up from previous year.

Revenue hit a new yearly high of 239.6 trillion won (224.8 billion USA dollars) in 2017, surpassing the previous high of 228.69 trillion won (214.5 billion US dollars) in 2013. Sales are expected to reach KRW 66 trillion for the three months ended 31 December 2017, which represents an increase of 23.8 percent year-on-year.

For 2018, it has issued a tempered forecast: analysts predict computer chip prices to drop and there is some doubt about Samsung's smartphone division, because of increased Chinese competition. The local currency has been appreciating for months amid the global trend of the weakening US greenback.

Analysts said LG benefitted from strong shipments of premium organic light emitting diode (OLED) TVs along with other high-end washers and refrigerators. However, despite the lower-than-expected results, operating profits in 2017 are the second highest in the company's history, behind 2009.

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Shares of LG Electronics closed at 105,000 won on the main bourse Monday, down 5.41 percent from the previous session.

The mobile business, however, is presumed to have posted quarterly losses of around 200 billion won, analysts said, despite a slight improvement in the sales of the V30 and Q smartphones.

LG did not offer a net profit estimate for the fourth quarter, nor breakdowns for each segment.

This photo taken on January 9, 2018, shows South Korea's largest conglomerate Samsung's offices in Seoul.

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