Samsung posts first-ever loss - CIOL News Reports

SEOUL, S.KOREA: Samsung Electronics Co Friday posted its first net loss ever since it began reporting quarterly results in 2000, which is a clear reflection of the impact of global economic meltdown.

The company posted an October-December net loss of $16.2m (22.2bn won), compared with the profit of 2.21 trillion won a year ago.

The revenue was KRW18.5 trillion, up 5.5 per cent from KRW17.5 trillion in the fourth quarter of 2007. The company reports its net profit using Korean accounting standards that leave out the effect of some overseas units.

Samsung said it expects the global handset market to come down by 5-10 per cent this year after declining 5 per cent in the fourth quarter of 2008.

"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," Samsung said in a statement.

Samsung's loss follows a profit warning from Japan's electronics giant Sony and other tech firms Microsoft and Nokia.

"Samsung will likely bleed more, if not suffer wider losses, as the global economy is expected to slump further well into the first half of this year," said Lee Jeong, an analyst at Hana Daetoo Securities, according to Reuters. "Although there are signs that the prices of chips and LCD panels have stabilized recently, it's hard to predict when they will pick up, given the bleak outlook for the global demand."

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