Friday, February 7, 2014
Samsung Electronics has reported a drop in quarterly profit for the first time in two years.Net profit was 7.3tn won ($6.8bn; £4bn) in the October-to-December period, down 11% from the previous three months.
Samsung's earnings were hurt by a drop in margins in its mobile phone division, which saw operating income fall 18% quarter-on-quarter.
The company paid a special bonus totalling 800bn won to employees during the quarter to celebrate the 20th anniversary of Chairman Lee Kun Hee's management strategy, which is widely credited to have spurred its growth.
Meanwhile, it said that fluctuation in the South Korean currency dented its earnings by 700bn won.
The firm warned that it would be "challenging" for it to improve its earnings in the current quarter as weak seasonal demand "will put pressure on demand for components and TV products".
Growing competition
The success of its smartphone division has been one of the biggest drivers of Samsung's growth in recent years.Looking at the quarterly earnings trend, we expect 2014 to follow last year's pattern of a weak first half and a strong second half as usual”
By: DocMemory
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