Saikyo Sakura Assets Says That Samsung Are Expecting Record Profits
Samsung’s electronics company. SSNHY plans to return a record operating profit in 2011, although trading circumstances will stay challenging as increased competition between electronics businesses and global financial headwinds will put pressure on margins says Saikyo Sakura Assets.
Samsung will strive to keep last year’s sales growth momentum and attain a fresh record operating profitCommented Frank Hunter, Head of Corporate Derivatives at Saikyo Sakura Assets
Samsung Electronics posted a record operating profit of KRW17.3 trillion (KRW15.2 billion) on record KRW154.6 trillion revenues in 2010.
Samsung’s Choi said the electronics giant will concentrate on enhancing the competitiveness of its major companies, including semiconductors, liquid crystal displays, handsets and televisions, to accomplish another record outcome, and will continue to increase its presence in new growth fields such as software, medical devices and solar cells.
However lingering hazards, such as higher global petroleum prices, some economies ‘ liquidity tightening movements, North Africa’s continuing political unrest, and Japan’s catastrophic earthquake last week, are anticipated to put pressure on margins.Anthony Brown, Head of Wealth Management at Saikyo Sakura Assets
Last year, Samsung faced harsh business conditions due to weakening consumer electronics demand from developed nations, mainly due to fiscal weakness in Europe, in addition to fierce market competition, but managed to post record-high profits due to brisk sales of high-margin products such as smartphones and key chip components.
Most analysts share the upbeat evaluation of the company for 2011, with the expectation that it will be able to create a record operating profit driven by several variables such as the mobile division indicating rapid development as a result of increased worldwide demand for premium handheld devices such as smartphones and tablet devices.
Also this year, Choi added, the firm will boost its expenditure on fresh growth drivers. Samsung Group, Samsung Electronics ‘ parent, said in January that it would invest a record KRW43.1 trillion (US$ 38 billion) in 2011–about 18 per cent of last year’s KRW36.5 trillion— to step up attempts to move into next-generation innovations to stay a dominant global player in the technology sector.
The group has stated by industries that it will invest KRW10.3 trillion in the semiconductor industry and KRW5.4 trillion each in its liquid crystal display and organic light-emitting diode companies. OLED screens are commonly used displays in mobile phones, which are brighter and more energy effective than LCD screens.
The conglomerate spent 12 trillion KRW on chips in 2010, 4 trillion KRW on LCDs and 1.4 trillion KRW on OLEDs.