Samsung performance worries Asia markets
Samsung Electronics, Asia’s most valuable technology company, has reported that its first-quarter profits were over 50 percent lower compared with the same period last year.
Net profits were down 52 percent and sales revenue was down 4.2 percent.
Operating profits in Samsung’s liquid crystal display division were 97 percent lower and in its semiconductor business they fell by 22 percent as compared to last year.
The factors cited as leading to the loss were said to include oversupply, an unfavorable exchange rate, and weak pricing power.
The company was also hurt by its bail-out of its credit-card affiliate, Samsung Card, of which it owns 47 percent.
The South Korean company, which is the world’s biggest flat screen manufacturer as well as the second-largest chipmaker and the third-largest mobile phone producer also reported that it expected that second-quarters earnings news will not be much better.
Samsung said, however, that it was still optimistic about its long-term outlook.