Samsung reports quarterly sales of KRW 18.45 trillion, and a quarterly net loss of KRW 0.02 trillion. Net income for the year reported at KRW 5.53 trillion.
SEOUL, Korea - January 23, 2009: Samsung Electronics Co., Ltd. today announced its financial results for the fourth quarter ended December 31, 2008. The company posted a net loss of KRW 20 billion on revenue of KRW 18.45 trillion on a parent basis.
For the full year 2008, Samsung posted revenue of KRW 72.95 trillion, operating income of KRW 4.13 trillion, and net income of KRW 5.53 trillion on a parent basis.
Fourth quarter highlights include record quarterly sales of mobile phones in the Telecommunication Network Business, plus the introduction of advanced SSD platforms for laptops and servers in the Semiconductor Business.
The Semiconductor Business reported revenue of KRW 3.92 trillion in the fourth quarter, or an 18% drop from the previous quarter, and an operating loss of KRW 0.56 trillion for the quarter. (Consolidated quarterly basis: Revenue of KRW 4.81 trillion and operating loss of KRW 0.69 trillion.)
The decline is attributed to falling prices for DRAM and NAND flash chips in the fourth quarter. The global economic slowdown had an adverse effect on consumer purchases of electronics goods in the fourth quarter, traditionally a strong period for electronics companies.
Operating profit margins stood at -14%, when operating profit margins of key industry peers were at -40%-level.
Samsung will continue investing in high-end growth opportunities such as 2G DDR2 and 1G DDR3, as well as bolster its SSD line-up and high-density moviNAND platform, reinforcing the company's market leadership and differentiating key product sectors from competitors.
The LCD Business reported revenue and operating loss of KRW 4.21trillion and KRW 0.35 trillion, respectively, in the fourth quarter, reflecting a prolonged cycle of tight pricing for LCD panels amid stagnant demand in the global economic downturn. (Consolidated quarterly basis: Revenue of KRW 3.55 trillion and operating loss of KRW 0.23 trillion.)
In the first quarter of 2009, a seasonally slow quarter for the industry, Samsung expects market growth to be sluggish as spending contracts due to the global downturn. Samsung will continue preparing to outperform the market as the economy recovers by enhancing its technology leadership and driving greater profitability through differentiated product offerings and cost competitiveness.
The Telecommunication Network Business revenue in the fourth quarter reached KRW 7.73 trillion and operating profit stood at KRW 0.16 trillion. (Consolidated quarterly basis: Revenue of KRW 10.32 trillion and operating profit of KRW 0.17 trillion.) The global handset market contracted 5% in the fourth quarter from the previous quarter. However, on a year-on-year basis, the market expanded 14% in 2008.
The telecom business is expected to perform strongly in 2009 despite the slower market conditions projected for the first quarter. The company will continue offering exciting low-end line up models in emerging markets, while enhancing profitability by improving operational efficiency and streamlining marketing costs.
Additionally, Samsung in 2009 will expand its portfolio of high-end touch phones and smart phones, and expects to expand its partnership platforms with network carriers worldwide.
The Digital Media Business recorded quarterly sales of KRW 2.41 trillion won and an operating loss of KRW 0.17 trillion won. (Consolidated quarterly basis: Revenue KRW 12.62 trillion and operating profit of KRW 0.11 trillion.). The company is well on track to maintain its No.1 market position in TV sales worldwide in 2009, launching premium-level products such as its new portfolios of LED-TVs and Slim TVs, and expanding sales distribution channels globally.
Overall in 2009, Samsung will continue to expand market leadership in dozens of product categories globally, as the company contends with the day-to-day challenges of a demanding economic environment. Samsung will focus on a series of determined action programs to improve profitability, enhance operational efficiency, increase cost competitiveness, and continue building on the Samsung brand.
|Business||4Q 07||3Q 08||4Q 08||Growth
|Business||4Q 07||3Q 08||4Q 08|
|Total Operating Profit||1.78||1.02||(0.94)|
* reflects May 2008 Organization Restructuring
About Samsung Electronics
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2007 consolidated sales of approximately US$105 billion. Employing approximately 150,000 people in 134 offices in 62 countries, the company consists of four main business units: Digital Media Business, LCD Business, Semiconductor Business, and Telecommunication Business. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones and TFT-LCDs. For more information, please visit www.samsung.com.