April 26, 2024

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[THE INVESTOR] Samsung Electronics is expected to see its annual revenue exceed 200 trillion won (US$166.50 billion) for the fifth consecutive year in 2016 despite the unprecedented recall of its fire-prone Galaxy Note 7.

The Korean tech giant’s revenue has topped the 200-trillion-won mark since 2012, with the highest figure of 228.7 trillion won in 2013. 

According to the company’s regulatory filings, Samsung earned 148.5 trillion won in sales and 20 trillion won operating income in the January-September period this year.

Unlike earlier speculations that the Note 7 fiasco could significantly undermine Samsung’s profits in the latter half of this year, the company is filling up the loss, worth more than 3 trillion won, with its robust memory chip and smartphone display sales.

Local investment firm HMC Investment predicts the firm’s sales and operating profit in the fourth quarter would reach 52.1 trillion won and 8.7 trillion won, respectively.

Another investment firm EBEST Investment & Securities forecast the figures to stand at 53.9 trillion won and 8.55 trillion won, repectively.

“The anticipated adoption of 18-nanometer class DRAM chips and flexible organic light-emitting diode displays in smartphones will help boost the profits of Samsung next year,” said Roh Geun-chang, an analyst from HMC Investment.

Industry sources say Samsung has recently set 30 trillion won as its earnings target next year during a global strategy meeting of top executives held earlier this month.

By Kim Young-won (wone0102@heraldcorp.com)