Feeds

Samsung sales, income slump

Won too strong, apparently

  • alert
  • submit to reddit

Security for virtualized datacentres

Samsung's profits were well short of expectations in the first quarter, as it suffered in its three key markets: displays, chips and phones.

Sales for the quarter fell 4.2 per cent year on year to KRW13.8tr ($13.54bn), down just 2.6 per cent on the previous quarter. Operating profits were down 46 per cent to KRW2.15tr ($2.11bn), with net income coming to KRW1.5tr ($1.47bn), down 52 per cent on the year-ago quarter and 18 per cent sequentially.

Analysts polled by Bloomberg had anticipated, on average, net income of KRW2.4tr ($2.36bn) on sales of KRW14.25tr ($13.99bn). But Reuters notes that some had reined in their expectations during the week, and had forecast KRW1.56tr ($1.53bn), still above the figure Samsung delivered.

"This is not good news," Thomas Choi, head of research at PCA Asset Management, told the news agency.

Samsung blamed the decline on the strength of the won against the dollar. Exchange rates have gone up almost 20 per cent since the start of the year, which is a problem when 80 per cent or more of your sales are made overseas.

The company, the world's third largest mobile phone maker, sold 24.5m units, a record, in the quarter, up from 21.1m in the previous quarter. Margins were up, too, to 17 per cent. But it wasn't sufficient to counter falling prices which knocked the division's operating income down 33 per cent year on year to KRW841bn ($825.4m).

Chip operating income fell 22 per cent to KRW1.39tr ($1.36bn), again thanks to the tough exchange rate and to worldwide inventory issues, while the LCD division saw operating profits fall 97 per cent to KRW205bn ($201.2m) as prices slumped.

And don't expect any improvement in the current quarter, the company warned. Trading conditions aren't going to get any better, it said, pinning its hopes on digital TV receivers and even larger LCD products. ®

Related stories

Chip maker Centaur out-paces Intel, Samsung
Samsung unveils 3GB HDD smart phone
Samsung shows 82in monster TV
Samsung glum on year ahead
Samsung shows 'world's first' DDR 3 chip
Smart phone shipments break records
Mobile phones shipments up 38% in Q4

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.