Samsung Q4 financials indicate first ever loss
updated 11:35 pm EST, Thu January 22, 2009
Samsung first ever loss
Samsung has joined the group of companies that have been hit particularly hard by the current state of economic strife, with its Q4 financial disclosure indicating an operating loss of 940 billion won (~$680 million USD). Quarterly net income totaled a loss of 20 billion won (~$14 million USD) and marks a first ever for the South Korean company. Contributing factors likely include lowered demand for TVs, computers, handsets and a variety of other electronics.
"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."
AMD posted a $1.4 billion loss, while its competitor Intel last week reported a similar loss of $1.1 billion. Sony, Microsoft and Nokia also fell below analysts expectations for the quarter. The effects permeate the entire business structures, with Microsoft announcing 5,000 job cuts, Intel planning on displacing 5,000 to 6,000 employees, and AMD reducing its workforce by 1,100.
