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Samsung Electronics Calculates Last Year`s 4th- Quarter Surplus in Semiconductors

Samsung Electronics Calculates Last Year`s 4th- Quarter Surplus in Semiconductors

Posted January. 08, 2002 09:06,   


Samsung Electronics` semiconductor section reportedly reached a surplus from the 4th- quarter (October to December) last year, despite predictions that it will turn a profit only by the 1st- quarter (January to March) of this year. The continuous recovery in D- Ram prices, along with profitable business in System LSI and S- Ram, possibly brought in small profits. Although counted as the `No.1 Dollar source`, semiconductor business recorded 380 billion won in management loss in the 3rd quarter (July to September) of last year mainly due to the fall in prices.

"As a result of the examination of Samsung`s semiconductor production in the 4th- quarter last year, System LSI counted 40 billion won, Thin Film Transistor Liquid Crystal Display (TFT- LCD) counted10 billion won, S- Ram and Flash Memory counted 110 billion won in profit, and D- Ram suffered 150 billion won in losses. In total, the semiconductor section made a 10 billion won surplus." said Choi Suk Po, a Meritz financial analyst.

D- Ram, being the center of attention, reduced the deficit range to 150 billion won from the 3rd quarter`s 500 billion won, and helped to bring in the total figure of a record 40 billion won profit.

The interesting fact is that most of experts projected Samsung semiconductor`s management profit to be 300 billion won in the 1st- quarter.

D- Ram began to record a surplus since the early January, and it is expected to create 250 to 300 billion won in profits as the Hynix- provision sale created a wider margin.

Jeong-Hun Park sunshade@donga.com