Samsung Electronics Semiconductor Division Marked First Loss

Due to long economic slump in the semiconductor market in the world, Samsung Electronics marked operational losses of 380 billion won in its leading semiconductor operations in the third quarter (July through September) this year. Even though it was the quarterly operational loss, it was company`s first in the semiconductor operations in 13 years since Samsung Semiconductor Co. was merged in 1988.

But Samsung Electronics maintained a black-ink condition of a narrow range as a whole due to progress made in the field of telecommunication that manufactures such products as cellular phones.

Samsung Electronics had a meeting for investor relations (IR) at Korea Stock Exchange Building in Yoido, Seoul and announced that it had achieved in the third quarter △ 7.23 trillion won of total sales △ 420 billion won of net profit △ 18.2 billion won of operation profit.

The total sales dropped by 800 billion won over the second quarter sales (8 trillion) and the operation profit decreased by 18.2 billion won. In particular, the semiconductor division, which had marked 1.2 trillion won of surplus by the first half of this year, marked 380 won of operation loss, as its total sales marked 26 percent off the preceding quarter due to a continuing fall of D-ram memory prices.

Business circles pointed out, ``To focus on the profit is meaningless because it is not so hard for the company making 7 trillion won of total sales to post the profit of tens of billions of won in terms of accounting techniques`` and forecasted, ``A similar amount of loss may be made in the semiconductor operation during the fourth quarter.``

Park Won-Jae parkwj@donga.com