Friday, April 29, 2011

Samsung Gain Dive By 30%

Samsung Electronics' has reported its lowest quarterly distinction in roughly two years as urge for its products continues to fall.

Net distinction is to initial 3 months of the year stood a 2.78 trillion won ($2.6bn; 1.6bn) a 30% tumble compared with the same time final year.

The wiring creator has been strike hard by feeble urge and descending prices of TVs and LCD panels.

Samsung is the world's largest creator of mental recall chips and prosaic screens.

The problems of descending sales and feeble prices have been compounded by the strengthening South Korea's currency.

The Korean won has risen by roughly 11% against the US dollar given June final year.

A stronger banking not usually creates Korean products more costly compared with its competitors in the region, it moreover hurts companies when they repatriate their unfamiliar gain back home.

Analysts have warned that if the Korean banking continues to rise, it will have a disastrous effect on the company.

"The firming won is a concern. Should the won fall next 1,050 won per dollar, it might result in trouble." mentioned Kim Sung-In of Kiwoom Securities.

However, there was confidence amid analysts that Samsung's trade opening would upgrade via the rest of the year.

"We design the second entertain to be improved than the initial quarter. Semiconductors will lead the expansion of the business," mentioned Kim Young-Chan, account executive at Shinhan-BNP Paribas Asset Management.

Kim Jang-Yeul, researcher at Mirae Asset Securities, added: "There are a few concerns about unfamiliar swap rates, but Samsung's working increase will expected improve."

No comments:

Post a Comment