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Samsung net profit falls 30% in Q1

Samsung net profit falls 30% in Q1 following weak tv sales

Samsung Electronics has reported its lowest quarterly profit in almost two years as demand for its products continues to fall.

Net income for the South Korea based company fell 30% from a year earlier to 2.78trillion won ($2.6 billion). Sales rose 6.8% to 37trillion won, in line with a preliminary estimate announced on April 7. The company said slowing sales of tvs damped profit at its digital media division and led to a loss at the flat screen panel.

Sangsuk Roh, president of Samsung Electronics Levant, described the quarter as 'difficult' and cited the rise in materials costs as well as economic uncertainties related to Europe's financial stability as the main reasons for the company's poor results.

He maintained that the earthquake had a relatively limited effect on Samsung's ability to obtain components from Japanese suppliers and announced plans to enhance cost competitiveness in memory products through geometry migration in order to drive sales. Roh added that the company will launch new smartphones and tablet pcs and increase its focus on premium lcd panels and tvs.

Author
Laura Hopperton

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