Samsung’s Money Woes Intensify
CBJ — One of the world’s most successful communications companies finds itself in a much larger financial bind than had been originally thought.
Samsung Electronics’ fourth-quarter operating profit will plummet almost 30% compared with a year ago to $9.7 billion.
Samsung will disclose detailed earnings later this month, but its early warning is clear: “difficult conditions” in the memory chip market will continue in the first three months of this year. The company shares have already dropped by 25% over the past 12 months, and trade at just six times forward earnings; Apple and rival chip-maker Intel produce nearly twice that amount by comparison.
Despite its recent problems Samsung Electronics remains the world’s largest information technology company, consumer electronics maker and chipmaker. It leads the way in Android mobile phones.