Samsung Electronics Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 2016; Provides Earnings Guidance for the First Quarter of 2017
Panel segment, which manufactures OLED and LCD screens.
For the year, the company's revenue was KRW 201.87 trillion. Operating profit was KRW 29.24 trillion. Annual free cash flow came in at approximately KRW 24.9 trillion. Company invested KRW 25.5 trillion in capital expenditure, KRW 9.8 trillion for display and KRW 13.2 trillion for semiconductors. The annual the actual CapEx was slightly lower than previous guideline of KRW 27 trillion, mainly due to the fact that some of the year-end investments in Display business were carried over to 2017.
For the first quarter of 2017, the company expects, overall company earnings to decline quarter-on-quarter as earnings in the set business are projected to decline resulting from increased marketing expenses in the Mobile business and sales decreases of TVs due to weak seasonal demand. Profit to slightly decrease quarter-on-quarter due to increased expenses, including marketing-related spending, to enhance market presence. A slight impact in sales revenue as a result of adjustment in selling price in response to the fluctuation in panel prices, will focus on profitability by introducing latest lineups earlier while promoting sales increase in the premium product category.