Samsung Electronics and Acer edging lower in Australia

Both electronics makers reported negative cash from operating activities in Australia for the year ending December 31.

Despite seeing steady revenue for the year ending December 31, Samsung Electronics Australia has seen its comprehensive loss for the year blow out from AU$3.5 million for 2016 to AU$57 million in 2017.

Over the course of 2017, the local arm of Samsung Electronics reported AU$2.5 billion in revenue, a slight increase on the AU$2.4 billion a year prior. However, a combination of paying more to suppliers than was received from sales, and AU$27 million income tax refund for 2016 turning into a AU$6.8 income tax payment in 2017, meant the company reported cash outflow from operating activities of AU$13.3 million, compared to AU$136 million cash inflow for 2016.

On its income tax expense line item, Samsung Electronics Australia reported AU$17.7 million this year, a AU$1 million jump on the number for 2016.

The company reported having 302 employees.

Its Korean parent entity, Samsung Electronics, reported its highest ever yearly operating profit in January, coming in at 54 trillion won. The figure was driven by the company's semiconductor division, which contributed 35 trillion won, compared to 14 trillion won a year prior.

For its handset business, operating profit the full year was 12 trillion won, which was up by 1 trillion over the period.

ACER CREEPING LOWER

For the Australian arm of the Taiwanese manufacturer, 2017 saw a similar set of circumstances to those at Samsung.

Total revenue was down slightly down to AU$298 million, composed of AU$263 million of goods and AU$35 million of services, which saw a AU$2 million jump and AU$8 million decrease, respectively.

With payments to suppliers and employees outstripping cash receipts, Acer Australia reported a AU$10.4 million cash outflow in 2017, compared to a AU$15.3 million cash inflow for 2016.

Although Acer reported a drop in profit before income tax -- AU$3.1 million for the year ended December 31, 2017, against AU$4.9 million for the previous period -- a higher adjustment for prior years income tax saw the company report a AU$2.1 million tax expense, compared to a AU$1.7 million adjustment last year.

Overall, the company reported AU$1 million in net profit after tax, a AU$2.2 million drop on last year's result.

Acer reported increased employee costs throughout the year and said it had 94 employees.

For the local company's ultimate Taiwanese parent, Acer reported a 2 percent increase in revenue to NT$237 billion for its 2017 fiscal year, a doubling of operating profit to NT$3.6 billion, and a massive turnaround from the NT$4.9 billion loss after tax for 2016, reporting profit of NT$2.8 billion after tax for 2017.

READ  MORE: