Crime & Justice

Samsung increases net profit by 46.2% in Q1

Seoul, Apr 29 (EFE).- South Korean tech giant Samsung Electronics announced Thursday a net profit of 7.14 trillion won ($6.45 billion) in the first quarter of the year — a 46.2 percent rise compared to the same period in 2020.

The company also achieved a gross operating profit of 9.75 trillion won, up 42.9 percent on a year ago, and expanded its operating profit by 45.5 percent to 9.38 trillion won.

Sales rose 65.38 billion won in January-March, which represents a year-on-year increase of 18.19 percent.

The data is in line with the forecasts presented at the beginning of the month, and which at the time were already above what was initially expected by analysts.

In a statement, the Suwon-based company said that “solid sales of smartphones and consumer electronics outweighed lower earnings from semiconductors and displays.”

Its semiconductor branch, normally its most profitable division, saw slight declines in its operating profit both year-on-year and with respect to the previous quarter, despite good billing data.

The reasons for this setback lie in the closure of its plant in Austin, United States, for almost a month caused by the snow storm that hit Texas in February.

The company also attributed the decline to the drop in NAND prices.

Its Mobile Communications division generated an operating profit 12.3 percent higher than a year ago and 30.7 percent higher than in October-December.

This was thanks to increased sales of their phones, both their top-of-the-line and cheaper models, as well as other products linked to the mobile ecosystem, such as tablets, laptops and wearable technology.

In turn, its communication networks business performed well thanks to the expansion of 5G technology.

For the second quarter, the company expects that conditions for its operations in the chip sector will improve thanks to the persistent demand for servers, and on the contrary, it expects that the revenues of its mobile division will fall due, paradoxically, to the current shortage in the global supply of semiconductors. EFE


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