Friday, April 15, 2005

Samsung suffers profit weaknesses

by Brian Turner

Weak pricing power, oversupply, and an unfavorable exchange rate were among the reasons given for unfavorable figures when Samsung Electronics released it’s first quarter earnings report.

The report was filled with bad news, including that operating profits in its liquid crystal display division were 97 percent lower and in its semiconductor business they fell by 22 percent as compared to last year.

Overall, net profits were down 52 percent compared the first quarter of 2004 and its sales revenue was down 4.2 percent.

The news is not expected to be much better when the South Korean company reports its second-quarter earnings.

Besides being the world’s largest manufacturer of flat screens, the second-largest chipmaker, and the third-largest maker of mobile phones, Samsung also has a credit-card affiliate, Samsung Card, that it had to bail out, which hurt earnings even more.

Samsung says, however, that it is still optimistic about it’s long-term outlook.

 

 

 

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