Samsung's Q4 profit falls 29% on weak IT demand and higher R&D costs.

Seoul, South Korea—Samsung Electronics reported a fourth-quarter operating profit of KRW 6.5 trillion (US$4.46 billion), down from KRW 9.2 trillion in the previous quarter. 

Revenue reached KRW 75.8 trillion (US$52 billion).

The company posted a full-year 2024 revenue of KRW 300.9 trillion (US$206.4 billion) and an operating profit of KRW 32.7 trillion (US$22.4 billion), making its annual revenue the second-highest on record after 2022.

The Device Solutions Division recorded KRW 30.1 trillion (US$20.6 billion) in revenue and KRW 2.9 trillion (US$2 billion) in operating profit for the fourth quarter. 

The Memory Business achieved record fourth-quarter revenue due to higher DRAM average selling prices.

The Mobile eXperience and Networks businesses generated KRW 25.8 trillion (US$17.7 billion) in revenue and KRW 2.1 trillion (US$1.44 billion) in operating profit. 

The Visual Display and Digital Appliances units posted KRW 14.4 trillion (US$9.88 billion) in revenue with KRW 0.2 trillion (US$137.2 million) in operating profit.

Samsung Display Corporation reported revenue of KRW 8.1 trillion (US$5.56 billion) and operating profit of KRW 0.9 trillion (US$617.4 million).

Capital expenditure for 2024 totaled KRW 53.6 trillion (US$36.8 billion), with KRW 46.3 trillion (US$31.8 billion) allocated to the Device Solutions Division and KRW 4.8 trillion (US$3.29 billion) to Samsung Display. 

Fourth-quarter capital spending reached KRW 17.8 trillion (US$12.2 billion), including KRW 16 trillion (US$11 billion) for Device Solutions.

The company's R&D expenses increased to KRW 10.3 trillion (US$7.07 billion) in the fourth quarter, representing 13.5% of sales, up from KRW 8.9 trillion (US$6.11 billion) in the third quarter.

Net profit for the fourth quarter was KRW 7.8 trillion (US$5.35 billion), with earnings per share of KRW 1,116 (US$0.77). 

The company's EBITDA margin stood at 23% for the quarter.