Samsung 3Q TV-Making Loss Narrows

Oct 24, 2008  •  Post A Comment

Samsung Electronics’ third-quarter loss from its television-making operations narrowed as shipments of its flat-panel televisions outpaced the broader market, helping it keep its worldwide lead among liquid-crystal display TV manufacturers. Profit from Samsung’s LCD panel-making business fell as TV makers cut back on inventory due to fears of a global economic slowdown.
Samsung’s digital media unit’s operating loss narrowed to 100 billion Korean won ($70.2 million) from 120 billion won ($84.2 million) a year earlier as the division’s sales jumped 29%. Samsung shipped 12% more flat-panel TVs than in the second quarter, exceeding the 8% quarter-to-quarter growth for the industry, the company said earlier today.
Samsung lengthened its lead over Sony as the world’s biggest TV producer in the second quarter, taking 23% of the market, up from 21% in the first quarter, NPD Group unit DisplaySearch said in August.
Still, Samsung’s LCD-making unit’s operating profit fell 44% to 380 billion won ($266.7 million) as TV makers braced themselves for a slowdown in flat-panel television sales by cutting inventory, causing the average 40-inch panel price to fall 11% from a year earlier to $474. The division’s earnings decline helped pull the parent company’s net income down 43% to 1.22 trillion won ($856.4 million).
Earlier this week, LG Electronics, the world’s third-largest television maker, said today that its TV-making operations turned its third consecutive quarterly operating profit on a continued increase in demand for its flat-screen TVs. Sony reports earnings next week.

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