Samsung Quarter Earnings Rise 10%

Staff On Apr 30 2001 - 6:00am

SEOUL, KOREA — Better-than-estimated earnings at Samsung Electronics during the first quarter — sparked by growth in LCD monitors, DVD players and GSM mobile phones — climbed 10.2 percent to $1.2 billion, compared with $1.1 billion in the fourth quarter of 2000. Operating profit margin for the first quarter was 19 percent.

However, the impact of slower growth in the world economy as well as weak semiconductor sales, especially in the United States, reduced Samsung Electronics sales during the first quarter by 5.5 percent to 6.4 billion, down from $6.8 billion in the fourth quarter of 2000.

The company expected sales during 2001 to slow to single-digit growth, compared with more than a 30 percent growth hike in 2000.

Sales of the company's Digital Media Business fell 8 percent $1.9 billion, accounting for 29 percent of total company sales during the first quarter.

Samsung's Information and Communication Business, namely telecommunications products, which contributed 22 percent of total sales, fell 8 percent to $1.4 billion in revenue during the first quarter. However, mobile handset sales jumped 6.4 percent to $1 billion during the first quarter.

Samsung Electronics said that it had achieved total consolidated sales during the first quarter of $8.1 billion and before-tax profits of $1.3 billion. The parent company had recorded sales during the first quarter of $6.4 billion and a pretax profit of $1.2 billion.