Seoul: Samsung Electronics Co. on Thursday announced a record-breaking operating profit for the fourth quarter, reaching the 20 trillion-won (US$13.8 billion) milestone for the first time, fueled by a supercycle in the chip industry. The fourth-quarter operating profit saw an over 200 percent increase from the previous year, as revealed in a preliminary earnings report by the company. If these figures are confirmed, it would mark the first instance of the company's quarterly earnings achieving the 20 trillion-won level.
According to Yonhap News Agency, sales rose 22.7 percent to 93 trillion won, making it the first time quarterly sales have exceeded the 90 trillion-won threshold. However, data regarding net profit was not disclosed. The reported operating profit was 1.8 percent above the average estimate, as per a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency.
Samsung Electronics did not provide a detailed earnings breakdown for its individual business divisions, with the final earnings report scheduled for release later this month. Analysts attribute the increased earnings to improved profitability in the Device Solutions (DS) division, which includes the company's key semiconductor operations.
According to Korea Investment and Securities Co., there was a significant rise in global prices of dynamic random-access memory (DRAM) and NAND flash, which surged about 40 percent in the fourth quarter compared to the previous three-month period. Market observers estimate the DS division's operating profit to be around 16 trillion to 17 trillion won, a substantial increase from 7 trillion won posted in the third quarter.
Samsung's mobile business is projected to have achieved an operating profit in the 2 trillion-won range, while the home appliance division likely incurred an operating loss of 100 billion won, as per market analysts. For the entire year of 2025, Samsung Electronics has projected its annual operating earnings to be 43.53 trillion won, up 33 percent from the previous year. Annual sales increased by 10.6 percent to 332.77 trillion won, though net profit data was not available.