Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Samsung earns $6.1 billion last quarter but shares plunge: Here's why

SEOUL, South Korea - Samsung earned $6.1 billion last quarter but investors were dissatisfied, sending its share price down 4 per cent. The panoply of numbers in its earnings report for the April-June quarter show why.

— MONEY SPINNER MALFUNCTIONS

Last quarter Samsung sold 18 million fewer handsets than 113 million in the first three months of the year. Smartphones and other handsets have previously contributed about 70 per cent of Samsung's profits. This quarter it fell to 60 per cent.

— TABLETS TRAIL

Samsung sold 8 million of its Galaxy tablets, down from 13 million in the first quarter. Like other tablet makers, Samsung is finding it hard work convincing consumers to constantly upgrade to the latest model.

— PANELS PLUS

A bright spot, with Samsung increasing its shipments of flat panel TVs to 12 million from 11 million in the previous quarter. But the business isn't big enough to offset declining smartphone sales.

— CURRENCY QUIRK

A stronger Korean currency meant nearly $500 million of operating profit was lost when foreign earnings were translated into won.

— DULL DIVIDEND

No sweetener for shareholders, with the interim dividend unchanged at 500 won (49 cents) per share.

— UNCERTAIN OUTLOOK

Samsung is not sure smarpthone profit will recover this quarter as cheaper models from companies such as Huawei are increasingly popular in developing countries.

— BIG SPENDER

Samsung has hefty investment plans for its semiconductor business which needs billions of dollars each year to upgrade facilities. It also must pick up the slack from smartphones. More than half of the company's 24 trillion won ($23.4 billion) of capital spending this year will be plowed into the chip operations.

— THE BOTTOM LINE

Net profit of 6.3 trillion won ($6.1 billion) was down a hefty 20 per cent from a year earlier. Sales drooped 9 per cent to 52.4 trillion won ($51 billion).

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Election 2014
Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates