Samsung Electronics Co. Ltd. posted a 1.69 trillion won (about $1.62 billion) profit on sales of 13.59 trillion won (about $13.06 billion)in the second quarter of 2005. The profit was down 46 percent and the sales down 9.3 percent from the same quarter a year earlier. The company said weak pricing for memory chips and thinning margins on LCDs and mobile phones, according to reports.

The company said that in the first half it had spent about two thirds of its planned 6.01 trillion won (about $5.77 billion) semiconducotor capital expenditure for 2005. The company said it had spent just 22 percent of its planned 2.86 trillion won (about $2.75 billion) spend on LCD manufacturing.

Semiconductor sales in the second quarter were 4.17 trillion won (about $4.01 billion), down 7 percent on the previous quarter and 9 percent down on the same quarter. LCD sales were 2.12 trillion won (about $2.04 billion), 12 percent up on LCD sales in the first quarter and 14 percent down on the same quarter a year before.

"We expect both sales and operating profit to improve in the second half," an Associated Press report quoted Chu Woo-sik, head of investor and public relations, as saying. "We see a solid demand recovery in major sale items including DRAM, NAND flash, LCD and mobile phones with the arrival of the high demand season," he was also quoted saying.

Chu was reported saying global DRAM demand is expected to pick up in the third quarter due to increased demand for PCs and that NAND flash sales would also increase in the second half.

By: DocMemory
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