Samsung Electronics’ 2020 net falls short of expectations

Samsung Electronics announced somewhat disappointing earnings for 2020, affected by lower memory chip prices, steep marketing costs and demand for electronics goods that was suppressed by the pandemic.

The electronics maker announced 2020 net profit Thursday of 26.48 trillion won ($23.78 billion), up 21.48 percent from the previous year but short of a consensus of 35.6 trillion won compiled by market tracker FnGuide.

Operating profit rose 29.62 percent to 35.99 trillion won. Sales rose 2.78 percent to reach 236.81 trillion won.

But 2020 was a good year compared to 2019, when chip prices hit bottom, although earnings fell short of the company’s heydays in 2017 through 2018, when operating profit exceeded 50 trillion won.

The fourth quarter of last year was weak, especially compared to the third. Samsung reported 61.55 trillion won in sales for the fourth quarter, up 2.71 percent on year, and operating profit of 9.05 trillion won, up 26.4 percent than a year earlier.

“Profit fell 26.7 percent from the third quarter due to weaker memory prices and sluggish consumer products sales, as well as higher marketing costs and a negative impact from the Korean won’s appreciation,” the company said in a statement.

Semiconductors accounted for 3.85 trillion won in operating profit in the fourth quarter, up 11.59 percent over a year ago.

Smartphone operating profit was 2.42 trillion won in the quarter, down 4.13 percent from a year earlier, while operating profit from the consumer electronics division edged up 1.22 percent to 820 billion won on year.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]