Science & Technology

Samsung expects operating profit to grow 29.5% in 2020

Seoul, Jan 8 (efe-epa).- Samsung Electronics announced Friday that it expects an operating profit of about 35.95 trillion won ($36,475 million) for all of 2020, 29.5 percent more than the year above, thanks to the increased demand for its main product, semiconductors.

The South Korean company explained that it expects sales income for the entire year of about 236.26 trillion won ($215.570 million), 2.5 percent more compared to 2019.

This improved performance responds to the limitation of the effects of the trade conflict between China and the US, which reached its worst levels in 2019, and the pandemic, which has increased demand, mainly for server chips.

In turn, the Suwon-based company (south of Seoul) expects an operating profit for the fourth quarter of about 9 trillion won ($8,235 million), 25.7 percent more year-on-year thanks to the good performance of its chip business.

The technology giant also plans to bill some 61 trillion won ($55,585 million) in the last quarter of the year, 1.87 percent more than the same period of the previous year.

While this volume of sales revenue is in line with analysts’ predictions, many were expecting a slightly higher operating profit of around 9.3 trillion won (€ 6.925 million / $ 8.48 billion).

The results of this fourth quarter would also be below those of the third, something that analysts attribute to the fall of the dollar and the beginning of restrictions in many European countries before the advance of the third wave of the pandemic.

As usual, Samsung did not mention its net profit or break down the data of its business branches in its forecast results report, which will be announced towards the end of the month. EFE-EPA

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