Geesung Choi, Vice Chairman and CEO of the South Korean conglomerate Samsung Electronics Co. Ltd. (SSNLF.PK, SSNNF.PK, SMSN.L) said Friday that amid a more competitive global electronics industry, the company will continue to generate revenue growth and "sound" operating profit.
Speaking at the 43rd Annual General Shareholders' Meeting, Choi said, "Reorganization of the electronics industry will gain speed this year and global competition will intensify. However, Samsung Electronics will continue to generate revenue growth and sound operating profit by increasing our market lead in terms of core business competitiveness, generating distinctive new value, and bolstering future competitiveness."
Choi stated that Samsung will continually enhance the hardware competitiveness of its core business areas and also work on increasing the competitiveness of such soft technologies as software, design, and service.
The company also plans to make more investments than in 2011 to increase market dominance of its core business areas and to develop future growth engines.
In early January, the company's parent Samsung Group said it plans to spend 47.8 trillion won or $41.7 billion on investments in 2012. The figure represents a 12 percent increase from the company's investment of 42.8 trillion won in the prior year, despite the global economic uncertainty.
For fiscal 2011, Samsung Electronics had reported a net profit of 13.73 trillion won, down 15 percent from 16.15 trillion won in the prior year. Operating profit was 16 trillion won. Total sales for the full year increased 7 percent to 165 trillion won from last year's 154.53 trillion won.
Choi said, "Even amid the difficulties of the financial crisis last year, Samsung Electronics' revenue reached an all-time high and stable profits were generated...The company further strengthened its leadership position in the industry."
Its fourth-quarter profit was boosted by strong sales of its Galaxy smartphones, more than offsetting weakness in flat panels and computer chips. The company sold about 97 million units of smartphones and 327.4 million handsets last year.
Samsung shares are currently trading down 12,000 won or 0.96 percent in Friday's regular trading at 1,238,000 won on the Kospi on a volume of 411,632 shares, against a three-month average volume of 317 thousand shares.
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by RTT Staff Writer
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