Still in profit for the year, though.
We heard Samsung’s plans to split into two separate companies in an effort to weather the recession and suggested they didn’t bode well for the company’s financial results. It turns out that prediction was right because Samsung has just posted a quarterly loss – its first ever! – of 20 billion Won (~£10.6 million).
In the same quarter last year, Samsung recorded a 1.22 trillion Won (~£638 million) profit, so the economic downturn has definitely had a profound effect on Samsung. Yearly net income was a more positive 5.53 trillion Won (~£2.93 billion), although that follows a 7.43 trillion won (~£3.9 billion) profit last year.
The largest contributor to this downward trend is Samsung’s semiconductor business, suffering a 94 per cent reduction is its year-on-year operating profit, thanks to that market undergoing a significant decline.
How long before Samsung announces job cuts, then?