August 25, 2000 in Social Responsibility News

SAMSUNG SDI Posts 2.756 Trillion Won in Sales

On August 2, Samsung SDI(CEO Soon Taek Kim) announced that it recorded 2 trillion 756 billion Won in sales and 273.4 billion Won in net profit, in the first quarter. As a result of the strong performance Samsung SDI will pay an interim dividend to shareowners of record on June 30. The par value(5000 Won) dividend rate is 10%. A Samsung SDI official stated, " revenues for the first half of the year reached 2 trillion 756 billion Won, up 22% compared to the corresponding period last year and net profits rose 140% compared to the same period last year to reach 273.4 billion won.", at a management presentation that was held on the same day. 50 branch managers and analysts from overseas and domestic securities firms were present at the presentation, which was held at the Chosun Hotel in Seoul. The ratio of recurring profit to revenue for the company is a healthy 14%, which underscores the strong performance in the first half of the year. Moreover, with continuous improvements in its financial structure, the debt to equity ratio has dropped to 82%(parent company basis) from 91.4% last year. The company also added that this year's ROE is expected to exceed 25%. The dramatic improvement in results is due to various factors. First is the shift in the business structure towards high value added product types including flat and large size CRTs. Second, all Samsung SDI overseas subsidiaries started to show a profit and also the increase in sales of small mobile displays such as STN-LCDs and VFDs. Also another factor is the continuous and innovative business restructuring centered around Six Sigma activities such as internal quality innovation and cost reduction. Furthermore, the company plans to pay an interim dividend of 10% for the first time in order to maximize shareholder value. The interim dividend is payable September 1, 2000. Samsung SDI projects that business will continue to be strong in the second half of the year and expects pre-tax profit for 2000 to go up by 210%, to an all time high of 750 billion Won. Based on the high profitability, the company plans to carry out continuous business restructuring and aggressive management activities. In order to secure future profitability and shift its focus from CRTs, Samsung SDI says it will invest 5 trillion Won by 2005 in new businesses with high growth potential such as wall-mountable PDPs, rechargeable batteries and mobile displays like OLEDs. Moreover, 5% of revenue will be allocated for R&D.


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