Samsung Electronics has released its financial results for the fourth quarter of 2022, revealing a consolidated revenue of KRW 70.46 trillion ($64 billion) and an operating profit of KRW 4.31 trillion ($3.9 billion). The electronics giant also reported a record high annual revenue of KRW 302.23 trillion ($273 billion) and KRW 43.38 trillion ($39 billion) in operating profit for the full fiscal year.
The business was impacted by a global economic slowdown and weak demand in the quarter, with declining earnings at the Memory Business due to falling prices and inventory adjustments. The System LSI Business also saw a decline in earnings, while the Foundry Business saw growth in revenue and profit, thanks to capacity expansion and diversification in customer base and application areas.
Samsung Display Corporation (SDC) also experienced a decline in earnings in its mobile panel business, while the large panel business saw narrowing losses thanks to increased sales of QD-OLED for televisions and depletion of LCD inventory.
The Mobile eXperience (MX) Business saw a decline in revenue and profit due to weak demand in the mid-to-low end segments, while the Networks Business saw growth thanks to domestic demand for 5G installations and expansion in overseas businesses.
The Visual Display Business saw higher revenue and operating profit, with sales of premium products such as Neo QLED and Super Big TVs increasing, while the Digital Appliances Business saw a decline in profit due to cost increases and increased competition.
Samsung anticipates demand to recover in the second half of 2023, despite macroeconomic uncertainties, with the semiconductor business focusing on high-end product demand and reinforcing its market and technology leadership. SDC’s mobile panel business is expected to be robust, with the Networks Business focusing on maintaining revenue growth and enhancing its technology leadership in 5G core chips and virtualized Radio Access Network. The Digital Appliances Business will aim to provide hyper-connected user experiences based on SmartThings and enhance the competitiveness of premium products.
The company invested KRW 53.1 trillion ($48 billion) in capital expenditures in 2022, with KRW 47.9 trillion ($43 billion) in semiconductors and KRW 2.5 trillion ($2.3 billion) in displays. The fourth quarter saw capital expenditures of KRW 20.2 trillion ($18 billion), with KRW 18.8 trillion ($17 billion) in semiconductors and KRW 0.4 trillion ($0.4 billion) in displays.
Samsung’s investments in memory focused on enhancing competitiveness, while foundry investments were focused on expanding advanced node production capacity and infrastructure. The brand’s financial results for the fourth quarter and full fiscal year of 2022 show the impact of weak global demand on the electronics giant, although it plans to maintain its competitiveness and focus on high-end product demand in the coming year.