Samsung Electronics Q1 net profit down to $2.59 billion

PanARMENIAN.Net - South Korea's Samsung Electronics said Friday, April 29, net profit fell 30 percent year on year to 2.78 trillion won ($2.59 billion) in the first quarter due to weak demand for flat panels and televisions.

The world's largest memory chipmaker and second-largest mobile phone producer also reported a 32 percent dive in operating profit to 2.95 trillion won, its lowest figure in seven quarters. Revenue was 36.98 trillion, a 6.8 percent rise year-on-year. The operating profit and revenue figures were in line with the company's earnings guidance released earlier this month.

Samsung said overall net profit had been declining since a strong first-quarter performance in 2010 because of lower memory chip prices and reduced profitability in liquid crystal display (LCD) panels and TV sets.

Vice-president Robert Yi said in a statement Samsung will "actively respond" to the challenges by improving cost-competitiveness in memory products, launching new smartphones and tablet PCs and focusing more on premium LCD panels and TVs, AFP reported.

Samsung Electronics, flagship of the Samsung group, employs some 190,500 people in 206 offices across 68 countries.