Samsung released fourth quarter earnings net profit of $2 billion 600 million

Beijing on January 13th news, according to foreign media reports, Samsung released the 2005 fourth quarter earnings today. The report shows that, due to the continued growth in demand for flat-panel TVs and music player chips, Samsung Electronics net profit for the first time since nearly five quarters of growth.

In the quarter ended December 31st, Samsung Electronics net profit of 2 trillion and 600 billion won (about $2 billion 600 million), an increase of 40%, sales of $15 trillion and 500 billion won, an increase of 12%. Samsung's performance exceeded expectations, Bloomberg survey, analysts had expected Samsung Electronics fourth quarter net profit of $2 trillion and 300 billion won. Samsung Electronics expects the upcoming World Cup soccer and music and movie download software will promote the upgrading of market demand, so the results will continue to grow in 2006.

Samsung Electronics expects 2006 LCD TV industry sales will grow 61%, NAND flash memory chip market demand will grow by up to two times. Woori Asset Management Co fund manager Cui Changhong (transliteration), said: Samsung Electronics has the ability to continue to maintain profit growth, the company's fourth quarter results are a positive." After the earnings release, Samsung's share price reversed the downward trend, up 0.2%. Over the past year, Samsung Electronics shares rose 46%, the highest in the past four years.

Throughout 2005, Samsung's net profit fell 11%, operating profit fell by 33%, sales were essentially flat. Over the past four quarters, due to the oversupply of memory chips and liquid crystal display, as well as the increasingly fierce competition in the mobile phone market, Samsung's profit margins continued to decline, net profit has declined.

In the fourth quarter of this year, Samsung Electronics LCD display sector's net profit of $400 billion won, an increase of nearly 40 times, sales of $3 trillion won, essentially flat with analysts' expectations. Samsung Electronics expects the world cup and the Winter Olympics and other sports events will enhance the market demand for flat-panel TVs, and therefore improve the LCD industry sales expectations. Samsung is expected this year, LCD TV sales will reach 40 million yuan, an increase of 61%, higher than the 37 million expected in November last year; the total sales of computer and TV LCD panel will reach 256 million yuan, an increase of 26%, higher than the previously expected $238 million; LCD panel of the company's own sales will reach 60 million. An increase of 37%.

Samsung Electronics chip sector net profit of 1 trillion and 600 billion won, sales of $5 trillion and 100 billion won, analysts expected. Samsung Electronics is expected in 2006 NAND flash chips used digital cameras, music players and mobile phone in the market demand will increase two times, but the first quarter of the memory chip sales will be a decline in the previous quarter. Samsung Electronics communications sector net profit of 380 billion won, an increase of more than doubled sales of $5 trillion won, an increase of 15%. Samsung Electronics mobile phone sales in the fourth quarter was $27 million 200 thousand, an increase of 29%, the company expects 2006 mobile phone sales will reach 115 million, more than in the year of 102 million.

Samsung Electronics expects 2006 capital expenditures of 9 trillion and 200 billion won, down by 8%, but research spending will grow by 12%, reaching $6 trillion and 100 billion won.