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Samsung's 4th-quarter net profit rises 13 percent

Samsung's 4th-quarter net profit rises 13 percent

Samsung Electronics said net profit rose 13 percent in the fourth quarter of 2010 amid higher sales of semiconductors and smartphones as the technology giant rounded out a record year for profits and revenue.
Samsung, the world's largest manufacturer of computer memory chips and flat screen televisions, earned 3.42 trillion won ($3.1 billion) in the three months ended Dec. 31, the company announced Friday. It had a net profit of 3.04 trillion won the year before.
Fourth-quarter sales rose 7 percent to 41.87 trillion won, Samsung said. That compares with sales of 39.25 trillion won the year before.
Investors welcomed the news, pushing up the company's share price as much as 1.4 percent to a record high 1.01 million won in morning trading shortly after the earnings were announced. Samsung released its results a little more than a half hour after the start of trading.
Suwon, South Korea-based Samsung Electronics Co. ranks as the world's biggest manufacturer of computer memory chips, liquid crystal displays and flat-screen televisions. It stands No. 2 in mobile phones behind Finland's Nokia Corp.
For all of 2010, Samsung said net profit surged 65 percent to a record high of 16.15 trillion won. Sales also increased to an all-time high of 154.63 trillion won, up 13 percent. And operating profit _ seen as a direct indicator of business performance before taxes, dividends, asset sales and other items are figured into net profit or loss _ jumped 58 percent to 17.30 trillion won, also a record.
Samsung's semiconductor business, which includes memory chips, and its telecommunications business, which includes mobile phones, were the company's main drivers in the fourth quarter, the company said.
Semiconductor sales gained 16 percent from the year before period to 9.25 trillion won. The company manufactures both DRAM chips, used mostly in personal computers, and NAND flash memory chips, used in products such as digital cameras, music players and smartphones.
Telecommunication sales rose 19 percent to 12.11 trillion won.
"In telecommunications, we achieved record high quarterly sales and operating profits as a result of strong sales of Galaxy S as well as Galaxy Tab in developed markets and solid sales of mass market smartphones as well as full-touch phones in emerging markets," Robert Yi, Samsung's head of investor relations, told analysts on a conference call.


Updated : 2021-04-18 23:54 GMT+08:00