Samsung LCD TV to cut investment competition exacerbated earnings decline

According to the British "Financial Times" reported that 15 of the world's second largest LCD manufacturer Samsung said that if in the competition and profitability continued to decline, it will consider big cuts in the flat panel display field of billions of dollars of investment.

The Korea Companies CEO Yin Zhonglong said in an interview, including mobile phone, semiconductor and liquid crystal display, Samsung business sales situation is very grim, the company may make a profit this year by up to 1/5 of the total. "Compared to last year, we will have poor performance," said Yin Zhonglong. 2004, Samsung's net income reached 10 trillion and 786 billion won ($10 billion 700 million). Profit may decline 10% to 20%. This has a lot to do with the market conditions, including raw materials and crude oil prices, as well as changes in the exchange rate factors."

The liquid crystal display industry has been involved in excess supply and demand, but Samsung is considered in good condition, so the company doubts about their said in the future of the industry, may also allow competitors and investors by surprise.

"It's a very difficult business, and it's going to take a lot of money," Yin Zhonglong said. "If it turns out to be a purely public product, we're going to have to adjust it."