Samsung announces earnings estimate

Jul 06, 2009 By KELLY OLSEN , AP Business Writer
A South Korean man walks past in front of Samsung Electronics' banner in Seoul, South Korea, Monday, July 6, 2009. Samsung Electronics Co. announced quarterly earnings estimates for the first time Monday, saying it hopes to reduce market confusion and speculation about its performance. (AP Photo/ Lee Jin-man)

(AP) -- Samsung Electronics Co., the world's biggest manufacturer of memory chips, announced quarterly earnings estimates for the first time Monday, saying it hopes to reduce market confusion and speculation about its performance.

The Suwon, South Korea-based corporation said it expects consolidated sales of between 31 trillion won ($24.46 billion) and 33 trillion won for the three months through June. That's up from 29.1 trillion won in sales a year earlier.

The company, which is also the second-largest maker of mobile phones, estimated operating profit would come it at between 2.2 trillion won and 2.6 trillion won, compared with 2.4 trillion won last year.

Samsung gave no explanation for the expected performance, though investors reacted positively. Samsung's shares rose 5.5 percent to close at 634,000 won. The results are scheduled to be released July 24.

The forecasts include the performance of its overseas and domestic subsidiaries excluding financial business, said Samsung spokeswoman Hwang Eun-ju.

The company does not release a quarterly consolidated net profit figure, however, and so issued no estimate for that. Samsung's announcement also included no estimates for its on a parent basis, which include net profit.

Last year, Samsung reported consolidated net profit of 5.89 trillion, down about 26 percent from 2007's 7.92 trillion won.

The manufacturer said it plans to continue providing earnings estimates within several days following the end of each quarter.

"Samsung believes that growing interest in the company's quarterly earnings and competing forecasts have led to more confusion in the market ahead of the recent earnings release announcements," the company said.

It also hopes the move will "help enhance company transparency and provide investors with a more accurate expectation of the earnings."

In the first quarter, Samsung's on a parent basis tumbled 72 percent to 619.20 billion won, while sales rose 8.5 percent to 18.57 trillion won.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Alibaba's plan: Today, China. Tomorrow, the world.

add to favorites email to friend print save as pdf

Related Stories

Hynix reports sixth straight quarterly loss

Apr 24, 2009

South Korea's Hynix Semiconductor, the world's second-largest computer memory chipmaker, Friday reported a sixth straight quarterly loss due to weak chip prices sparked by a global recession.

Samsung Electronics reports 72% profit slump

Apr 24, 2009

South Korea's Samsung Electronics, the world's top computer memory chipmaker, has announced its first-quarter net profit fell 72 percent year-on-year as poor demand depressed prices.

Taiwan's HTC says profit down 30 percent

Apr 06, 2009

Taiwan's smartphone maker HTC Corp posted a year-on-year 30 percent fall in first quarter net profit as the global economic meltdown hit sales, the company said Monday.

Recommended for you

Alibaba's plan: Today, China. Tomorrow, the world.

4 hours ago

Amazon and eBay should watch their backs. As Chinese e-commerce powerhouse Alibaba readies what could be the biggest initial public offering ever on the New York Stock Exchange, it is quietly hinting at plans ...

News Corp opposes Google in EU antitrust case

6 hours ago

The media conglomerate controlled by Rupert Murdoch is joining the fray in Google's protracted European antitrust case, saying the technology company unfairly distorts competition.

Apple iPhone lacks 'key' licence in China

9 hours ago

Apple's iPhone 6 still lacks a key network access licence in China, state media confirmed Thursday on the eve of its global launch, breaking official silence on why sales of the smartphone will be delayed.

Ericsson to stop making modems, shed hundreds of jobs

9 hours ago

Swedish telecom equipment company Ericsson said on Thursday that it would stop developing modems, a decision affecting almost 1,600 employees worldwide which is expected to lead to hundreds of job cuts.

User comments : 0