Samsung Electronics Q1 earnings plunge but beat expectations

The company remained cautious about demand going forward due to the global recession
  • (IDG News Service)
  • — 27 April, 2009 05:41

Samsung Electronics reported better first quarter earnings than analysts expected on Friday, led by its mobile phone division, but remained cautious about business going forward due to the global recession.

The world's largest memory chip and LCD panel maker said its net profit fell 72 percent year-on-year to 620 billion Korean won (US$461.7 million), while its revenue grew 9 percent to 18.97 trillion won.

The company reported stabilizing memory chip and LCD panel prices as well as better profit margins in its mobile phone division.

But Samsung remained cautious overall about sales going forward.

"It's very difficult to gauge the demand outlook," said Robert Yi, vice president of investor relations at Samsung, during a conference call.

In mobile phones, which turned in a good performance for Samsung in the first quarter, the company predicted emerging markets will continue to drive handset demand this year.

But, "demand in emerging markets is slowing down," said Kim Hyungdo, a vice president in Samsung's telecommunications division.

LCD panels, the screen part of computer monitors and laptop PCs, have benefitted from price increases recently, but the company was unsure that could last.

"We will monitor whether LCD panel prices continue to rise despite sluggish economic conditions," said Cho Yeongduk, a vice president in Samsung's LCD Business.

Rising prices for memory chips such as DRAM and NAND flash memory may also be short lived.

Price increases will lead to production increases and that will send prices down again, said Cho Namseong, a senior vice president in Samsung's semiconductor business.

He noted that there are still too many idled production lines in the memory chip sector that could come back online as memory chip prices increase, only to flood the market again.

"We aren't seeing any clear indication of demand improvement," he said.

One analyst on the conference call noted that Samsung's view of the market going forward was less upbeat than other technology companies and asked what Samsung saw that other companies might not be seeing out in the market.

"I'm actually quite interested to know what they see that we don't see," said Yi.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Topics: samsung, financial results
Comments are now closed.

Latest News Articles

Most Popular Articles

Follow Us

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Resources

Best Deals on GoodGearGuide

Compare & Save

Deals powered by WhistleOut
WhistleOut

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?