To: slacker711 who wrote (28 ) 1/16/2002 2:37:43 PM From: Eric L Read Replies (1) | Respond to of 374 re: Samsung 2001 Results The global handset market would expand to 415 million units this year and Samsung aimed to sell 32 million units, Choi Chang-soo, information division vice president, told analysts. The world's fourth largest handset maker would focus on growth in Asia, particularly China and India, in 2002, Choi said. Likely to support a rebound in earnings in 2002 was an upswing in handset sales on which Samsung posted one trillion won net profit last year. >> Samsung Profits Plunge Despite Improved Handset Sales Kim Miyoung Reuters January 16, 2001 Samsung Electronics Co Ltd announced smaller losses on chips and better handset sales in its fourth quarter results on Wednesday, but weak chip prices still dragged down 2001 profits at the world's largest memory maker. Samsung's fourth quarter net profit fell to 400 billion won ($306 million), in line with analysts' expectations, from 1.2 trillion won a year earlier. Losses on chips, which for much of 2001 sold for less than production costs, narrowed to 212 billion won in the final quarter from 380 billion won in the preceding three-month period. Samsung <05930> said losses were trimmed by a rise in chip prices late last year which allowed it to bump up contract prices twice in December. Despite stronger sales of mobile phone handsets, Samsung's overall 2001 net profit fell to 2.9 trillion won from a record six trillion won in 2000. That was in line with a consensus estimate by Multex Global Estimates which had forecast Samsung's net at 2.93 trillion won. "We expect to see a further improvement of chip prices in the current quarter and beyond, thanks to a steady rise in spot chip prices while the corporate (PC) replacement cycle kicks in," Samsung's Kim IU, vice president of its chip division, said on a conference call. Shares in Samsung, which Morgan Stanley has forecast at 529,000 won over the next 12 months, fell 3.4 percent to 301,500 won on Wednesday. They underperformed the Korea Composite Stock Price Index (KOSPI), which fell 1.07 percent. BETTER OUTLOOK FOR 2002 Samsung officials said they expected chip prices to rise this quarter and analysts said that could return Samsung to profits on memory products. It makes DRAM (dynamic random access memory), SRAM (static RAM), flash memory, TFT-LCD (thin film transistor liquid crystal display) and system LSI chips, used in computers, digital cameras, mobile telephones and other devices. "Samsung is likely to post 830 billion won in EBIT (earnings before interest and taxes) in Q1 given decreasing inventories and an expected rise in contract chip prices following a rally in spot prices to nearly $4," said Lim Hong-bin, a Samsung Securities analyst. Spot prices of industry standard 128 megabit DRAM chips have topped $3.50 after falling below $1 in October. Also likely to support a rebound in earnings in 2002 was an upswing in handset sales on which Samsung posted one trillion won net profit last year. The global handset market would expand to 415 million units this year and Samsung aimed to sell 32 million units, Choi Chang-soo, information division vice president, told analysts. The world's fourth largest handset maker would focus on growth in Asia, particularly China and India, in 2002, Choi said. Samsung said 2001 profits on home appliances including TVs and refrigerators fell to 183 billion won in 2001 from about 200 billion the year before. Sales of DVD players, digital cameras and other electronics delivered a net 293 billion won, down from about 500 billion won from a year earlier. Analysts said Samsung shares suffered after it cut its 2002 capital spending budget by nearly 30 percent to three trillion won, suggesting caution about a rebound for the IT sector this year. Shares in Intel Corp , the world's largest chipmaker, fell overnight after its capex plans triggered similar concern. "The fall in Samsung share prices is also attributable to growing sentiment that recent global tech shares may have gone a little bit far," said Salomon Smith Barney analyst Jon Chong-hwa. Despite a severe downturn in info-tech business last year, Samsung shares climbed 77 percent last year versus a 37 percent rise in the benchmark KOSPI. Analysts said investors were also seen taking profits after Samsung helped the broader market rally to fresh 17-month highs in early January. << - Eric -