Samsung Electronics, the world’s top maker of memory chips and smartphones, reported a record quarterly profit, aided by one-off gains and best-ever sales of high-end phones. The South Korean firm posted 5.2 trillion won ($4.5 billion) in quarterly operating profit, beating a consensus forecast of 4.7 trillion won by analysts surveyed by Thomson Reuters I/B/E/S. Samsung, which surged past Apple as the world’s top smartphone maker in the third quarter, only entered the smartphone market in earnest in 2010, but its handset division is now its biggest earnings generator.
Taiwanese smartphone maker HTC recorded a worse-than-expected yearly profit decline in the fourth quarter, and the first decline in two years. The former investor darling shocked markets in November by slashing its fourth-quarter revenue guidance, sending its shares down 28 percent in two weeks and 15 percent to date. Investor concerns linger over whether HTC still has the innovative streak that catapulted it from an obscure contract maker to a top brand.
Barnes & Noble cut its Nook sales forecast for this year and shocked investors by saying it was considering a sale of the electronic reader and tablet business, sending its shares down sharply. The bookseller has been banking on the Nook for growth, so news that holiday sales of the basic touchscreen e-reader were disappointing raised investors’ fears that Barnes & Noble was struggling to keep up with Amazon.com’s Kindle. ”They’re going to have to raise capital for Nook if they want to stay viable,” said Morningstar analyst Pete Wahlstrom.
Michael Woodford, the former CEO of Olympus, is dropping his bid to retake control of the troubled company because of lack of support from Japanese institutional investors, according to a Wall Street Journal report. Woodford will announce his decision to give up a proxy battle with management on Friday, the report said, citing an unidentified aide. Woodford was fired as chief executive in October and blew the whistle on a $1.7 billion accounting scandal at the Japanese maker of medical devices and cameras.
Yahoo named PayPal President Scott Thompson CEO as the company plows ahead with a strategic review in which discussions have included the possibility of being sold, taken private or broken up. Thompson, a former Visa payments software platform designer, joins the company five months after the firing of previous CEO Carol Bartz.
Thompson has been credited with driving growth at eBay’s online payments division. After the Yahoo appointment, some questioned if he could replicate his success as CEO of Yahoo. ”The risk element is that his background was in payments. And this is not a payment company, it’s a marketing, technology company,” said Lawrence Haverty, a fund manager with GAMCO investors, which owns Yahoo shares.