Samsung reports profits drop of 34pc

7 Apr 2011

Declining sales of televisions are behind a 34pc drop in Samsung Electronics’s profits for the first three months of 2011, the company’s preliminary data reveals.

Decreasing demand and falling prices on Samsung’s TVs and flat screens have impacted the South Korean company, analysts have said.

Samsung released its earnings guidance today, which doesn’t include a net profit estimate. Its official first-quarter results will be released later this month.

The earnings guidance shows a dip in operating profits to 2.9tn won (US$2.7bn) from 4.4tn won a year earlier.

However, Samsung is releasing tablet computers and new models of 3D and internet-connected TVs to increase its sales.

One factor in the company’s favour may be that customers could turn to Samsung for key components following the earthquake and tsunami in Japan that have damaged Japanese factories and disrupted the global supply chain, some analysts have said.