Samsung Electronics reports 72 pct drop in Q1 earnings

(ATTN: ADDS more details in last four paras)
SEOUL, April 24 (Yonhap) -- Samsung Electronics Co., the world's leading computer
memory chipmaker, said Friday that its first-quarter earnings fell 72 percent as
weak demand dragged down prices amid the economic downturn.

Net profit reached 619 billion won (US$462 million) in the January-March period,
compared with a profit of 2.19 trillion won a year earlier, the company said in a
regulatory filing.
Sales increased 8.5 percent to 18.57 trillion won over the cited period, while
operating profit dropped to 148 billion won from 2.15 trillion won, it said.
Shares of Samsung Electronics were trading at 613,000 won on the Seoul bourse as
of 10:08 a.m., down 2.23 percent.
Samsung, which had booked its first quarterly loss of 22 billion won in the
previous quarter, is expected to see its business performance improve as a
battered memory chip sector shows signs of emerging from a severe downturn.
"The first-quarter earnings was better than expected, and its earnings will
improve down the road as production cuts may help easing industry glut and price
gains," said Kwak Byeong-yeol, an analyst at KB Securities.
Samsung, also the world's largest maker of liquid-crystal displays and the No. 2
maker of mobile phones, has been hurt by sinking demand for semiconductors,
mobile phones and other consumer electronics as the global economic recession has
sapped demand for these products.
sam@yna.co.kr
(END)