Samsung's profits jumped 50 percent on-year in the fourth-quarter, as a diverse business portfolio helped cushion the fallout from a massive product recall of its Galaxy Note 7 handsets and
In a regulatory filing on Tuesday, Samsung Electronics - the flagship of South Korea's biggest conglomerate - said consolidated operating profit for the October-December 2016 quarter came in at 9.22 trillion Korean won ($7.9 billion), up 50.16 percent from 6.14 trillion won from a year earlier. The earning was in line with expectations, based on guidance provided previously.
The company added fourth-quarter earnings were driven by the components businesses, which make memory chips and display panels. A weaker Korean won against the dollar also had a positive impact on its operating profits.
The outlook is less positive for the January-March 2017 quarter, where Samsung expects a drop in earnings from higher marketing expenses for its mobile division and a drop in sales of TVs due to weak seasonal demand.
Investors had a positive response to the earnings report, with Samsung shares closing up 0.26 percent at 1,908,000, beating the broader Kospi index which finished flat at 2,065.
Samsung also said it planned to buy back 9.3 trillion won worth of shares this year, which is about 3.14 percent of its total market value, adding that the plan aims to reduce the total number of outstanding shares.