Feeds

Samsung sales, income slump

Won too strong, apparently

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
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?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.