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To: Don Green who wrote (67452)	3/9/2001 12:21:41 PM
From: Don Green	Respond to of 93625

Samsung says earnings will be flat or lower versus 2000 By Reuters Mar 9, 2001 (9:10 AM) URL: /story/OEG20010309S0036 SEOUL -- Samsung Electronics, said on Friday the company's earnings in 2001 would be about the same as or lower than 2000's due to weak global chip prices. ``Samsung Electronics's earnings this year are expected to be on par with last year's or worse because of the fall in chip prices in the global market,'' Yun Jong-yong, vice chairman of the chipmaker, told an annual shareholders' meeting. He did not provide figures. Samsung reported a record net profit of 6.01 trillion won ($4.74 billion) in 2000 on sales of 34.28 trillion won. Analysts said the earnings warning had been expected given the poor global semiconductor market. ``I would not be surprised to hear Samsung saying smaller earnings in 2001 than in last year,'' said Chung Jae-yeol, a chip analyst at Good Morning Securities. He said the brokerage house expected 5.1 trillion won in earnings on sales revenues of 36 trillion won in 2001. ``We don't expect any meaningful rebound in chip prices until the end of the first half,'' said Chung. ``Prospects for third or fourth quarter all depend on the economy of the United States, the biggest market for personal computers.'' Samsung's Yun said it had set a target of 37 trillion won in sales this year, up eight percent from a year earlier. Yun also said the company planned capital expenditures of 7.3 trillion won in 2001, up 1.5 trillion won from a year earlier, and that Samsung expected its debt-to-equity ratio to fall to 51 percent in 2001 from 66 percent the previous year. Shares of Samsung Electronics finished down 4.2 percent at 192,000 won on Friday, but that was less because of Samsung's own widely expected earnings news than in reaction to a fall in the technology heavy Nasdaq index in the United States and a sales warning by fellow chip maker Intel Corp. Samsung Electronics shares shed 41 percent of their value in 2000, while the broader Korea Composite Stock Price Index shed 51 percent during the same period. Samsung Electronics' shareholders voted on Friday to cut the number of its board members to 14 from 21. They also endorsed a rule to fill half of its board with outside directors.