Samsung Electronics quarterly profit declines

Samsung Electronics quarterly profit declines

Samsung Electronics quarterly profit declines

Written by Bella Dalima

24 Jan, 2014 | 4:21 pm

Samsung Electronics, the world’s biggest maker of mobile phones and TVs, 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. A special bonus payment and currency fluctuations also hurt its earnings.

The company paid a special bonus totaling 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”.

 

Source: BBC

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