Samsung Electronics announced its preliminary financial report data for the first quarter of 2022. The company expects an operating profit of $11.6 billion in the first three months of the year, up 50% from a year earlier and the highest level since 2018.
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Moreover, Samsung expects operating profit to reach 14.1 trillion won ($11.6 billion) in the first quarter, up 1.66 percent from 13.87 trillion won ($11.4 billion) in the fourth quarter of last year and 93,800 a year earlier. Billion won ($7.7 billion) rose 50.32%, beating analysts’ consensus estimate of 13.3 trillion won ($10.9 billion).
Samsung’s first-quarter revenue is expected to be 77 trillion won (about 63.2 billion US dollars), an increase of 0.56% from 76.57 trillion won (about 62.8 billion US dollars) in the fourth quarter of last year, and 65.39 trillion won in the same period last year. ($53.65 billion) rose 18%, beating analysts’ expectations of 76.8 trillion won ($63 billion).
Furthermore, the world’s largest maker of memory chips and smartphones did not report results for specific business units, but it is scheduled to release detailed first-quarter earnings on April 28.
Although chip prices fell in the first quarter, analysts said chip prices held up better than expected due to strong demand, as well as chipmakers prudently investing and limiting capacity expansion. That boosted earnings from Samsung’s chip business, which accounts for about half of Samsung’s total profit.
Prices for DRAM chips, widely used in data centers, fell 8 percent in the first quarter, while prices for NAND flash memory chips, used for data storage in technology equipment, fell 5 to 10 percent, according to data provider TrendForce. Analysts expect DRAM prices to continue falling in the second quarter as rising inflation could hurt demand for PCs, laptops, and smartphones.
However, TrendForce said raw material contamination incidents in February at NAND flash chip factories owned by Japan’s Kioxia and Western Digital Corp. are expected to boost NAND flash prices by 5% to 10%, helping to offset buyers keeping high inventories.
