Samsung Electronics Expects Record Profits for Fourth-Quarter of 2012
Published on: 8th Jan 2013
Note -- this news article is more than a year old.
By: Ian Mansfield
Samsung Electronics has reported another record quarter of financial results with its operating profit for the fourth quarter hitting a fifth consecutive record up by 88% to KRW8.8 trillion (USD8.3 billion).
The company issued preliminary guidance in advance of the formal figures due later.
Revenues were also up, by 18 percent to KRW56 trillion.
The company does not give a break down of its results in the preliminary figures, but analysts all agree that the results have been boosted by surging growth in its mobile phone business. That division accounted for two-thirds of profits in the previous quarter and shows no signs of slowing.
The company's increasing dependence on mobile phones for profits growth has however started to worry investors who are starting to see the company as primarily a mobile phone manufacturer, rather than as a diversified electronics giant.
The company's long term growth is particularly at risk of possible sales bans in various countries due to the ongoing tit-for-tat patent war between handset manufacturers. Although unlikely, the company's increasing dependence on mobile phones for profits raises the risk profile for the company if a sales ban were enacted.