Samsung posts record profit; keeps 2013 capex at 2012 level

SEOUL Fri Jan 25, 2013 5:29am IST

The company logo is displayed at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013. REUTERS/Rick Wilking

The company logo is displayed at the Samsung news conference at the Consumer Electronics Show (CES) in Las Vegas January 7, 2013.

Credit: Reuters/Rick Wilking

Related Topics

Stocks

   

SEOUL (Reuters) - Samsung Electronics Co reported a record quarterly profit of $8.3 billion and kept its 2013 investment plans at the previous year's level, defying expectations that it may reduce spending amid weaker demand for computer chips.

The South Korean firm said October-December operating profit increased 89 percent from a year ago to 8.84 trillion korean won, in line with its earlier estimate.

In a statement on Friday, Samsung said it would keep 2013 investment at a similar level to 2012, despite a bleak PC outlook and a move by rival Apple Inc to diversify its supplier base.

Analysts had expected a 4-20 percent cut in Samsung's capital spending this year.

Samsung, the world's biggest smartphone maker and a key supplier of memory chips, flat screens and microprocessors for Apple's iPhone and iPad, has increased its capital spending every year except 2009 since 2004.

It is preparing for a gradual Apple exit as the Cupertino California-based firm, in a global patent row with Samsung, reduces its component reliance on the South Korean company.

Shares in Samsung have climbed 12 percent over the past three months, while Apple slumped 20 percent, partly hit by worries that its dominance of the mobile industry was waning.

(Reporting by Miyoung Kim; Editing by Ryan Woo and Richard Pullin)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Earnings Season

Earnings Season

Reliance Q4 sales rise, refining margin narrows.  Read 

Innovative Solution

Innovative Solution

Turning smog into jewels - a Dutch designer's solution to Beijing's pollution.  Video 

Insider Trading

Insider Trading

Rajaratnam's brother loses bid to dismiss insider trading charges.  Full Article 

Literary Giant Dies

Literary Giant Dies

Mourning and memories in Gabriel Garcia Marquez's languid hometown.  Full Article 

S&P on India

S&P on India

S&P: India's ratings to depend on next govt econ, fiscal policies.  Full Article 

Ambitious Aim

Ambitious Aim

In green car race, Toyota adds muscle with fuel-cell launch.  Full Article 

Bond Market

Bond Market

A star abroad, RBI boss riles bond traders at home  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage