Samsung Electronics Says Business Outlook Not Good
Feb 28, 2005
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Samsung Electronics Co. Ltd. said the outlook for its key business was not good due to slower global economic growth and sluggish domestic consumption.
Samsung also said at an annual shareholder meeting that it has not yet decided whether to buy into a U.S. $1.2 billion share sale by its cash-strapped credit card unit.
"The world economy is facing slower growth this year, and the domestic consumption is still sluggish. So there are big risk factors going forward. The outlook for our key businesses is not good," said Yun Jong-yong, Samsung's vice-chairman.
Mr. Jong-yong reiterated Samsung's sales target of 58.7 trillion won (approx. $58.2 billion) this year, slightly higher than 57.6 trillion (approx. $57.2 billion) in 2004. He said the company would strive to beat last year's net profit of 10.79 trillion won (approx. $10.7 billion). Analysts are expecting only 8.6 trillion won (approx. $8.5 billion).
Shares in Asia's most valuable technology company, which has a market capitalization of $84 billion, were up 0.19 percent at 523,000 won (approx. $520).
Samsung, considered a leading liquid crystal display (LCD) producer, said in mid-January 2005 it expected handset profit margins to bounce back in the first quarter and flat-screen prices to recover as soon as the second quarter. (Reuters)
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