TOKYO — Samsung Electronics, the largest maker of smartphones, confirmed on Friday that growth in sales and earnings slowed sharply in the fourth quarter of 2013, and the company said business conditions would remain challenging in the first few months of the year.
Samsung, which is based in Suwon, South Korea, cited a range of macroeconomic and company-specific factors, including the recent strength of the won currency and concerns that a move by the Federal Reserve to scale back its stimulus efforts could curb economic growth. A special bonus that Samsung paid out to employees on the 20th anniversary of a new management initiative to improve quality also cut 800 billion won ($745 million) off the company’s quarterly earnings.
“Looking at the quarterly earnings trend, we expect 2014 to follow last year’s pattern of a weak first half and a strong second half, as usual,” Robert Yi, senior vice president and head of investor relations, said in a statement.
Analysts said increased competition in smartphones, which account for a majority of Samsung’s earnings, also played a role.
At the premium end of the market, which is dominated by Samsung and Apple, Samsung faces a renewed challenge from its rival, which recently secured agreements to distribute its phones via the largest mobile carriers in Japan and China. At the low end, Chinese smartphone makers offer increasingly sophisticated phones at bargain prices.
Samsung posted operating income of $7.74 billion, which was in line with a forecast issued two weeks ago.
Net income in the fourth quarter was $6.8 billion, up from $6.56 billion a year earlier but down from $7.67 billion in the third quarter of 2013. Fourth-quarter sales of $55.20 billion were up from $52.20 billion a year earlier but flat compared with the third quarter of 2013.
Profit margins in the smartphone business have fallen because of increased competition and marketing expenses, analysts say.
via apple - Google News http://ift.tt/1l3j39w
Posts
0 comments:
Post a Comment