Home >> Business

Samsung Expects Tough 2016 as Smartphone Troubles Widen

Consumer electronics giant Samsung on Thursday reported a bigger-than-expected decline in fourth quarter earnings as its smartphone and semiconductor businesses suffer amid weakening global demand for consumer electronics.

The tech major also warned a recovery in profit is unlikely during the first half of this year due to a tough business environment.

The South Korean company's net profit for the October-December period decreased 40 percent from a year earlier to 3.2 trillion won ($2.7 billion or roughly Rs. 18,394 crores).

A survey by financial data provider FactSet forecast net profit of 5.1 trillion won. Sales edged up 1 percent to 53.3 trillion won for the quarter. Operating income rose 16 percent to 6.1 trillion won, in line with Samsung's earnings preview earlier this month.

For the full year, Samsung earned 19.1 trillion won or $15.8 billion, down 19 percent from the previous year and the lowest level in 4 years. It was the second year in a row with a decline in annual net income after the company's earnings peaked at 30.5 trillion won in 2013.

The semiconductor business reported its first quarter-over-quarter profit decline during the final quarter of 2015. It logged 2.8 trillion won in operating income, about 25 percent lower than the previous quarter but somewhat higher than a year earlier.