Samsung Electronics Reports First Quarter Results

SEOUL, Korea – April 25, 2008: Samsung Electronics Co., Ltd., today announced revenues of 17.11 trillion Korean won (won) for the first quarter of 2008 ended March 31, 2008. Operating profit and net income for the quarter were 2.15 trillion won and 2.19 trillion won on a parent basis. Operating profit on a consolidated basis reached 2.57 trillion won.



In addition to first quarter earnings, Samsung also announced its capital expenditure plan for calendar year 2008. On a consolidated basis, capital expenditures will reach more than 11 trillion won this year, comprised of approximately 7.0 trillion won for the company’s memory business, and approximately 3.7 trillion won for the LCD Business.



Robust Performance in Telecommunication

The Telecommunication Business posted record-high quarterly revenues of 5.55 trillion won. Operating profit reached 920 billion won, growing 57 percent quarter on quarter, while the operating margin was 16 percent. On a consolidated basis, operating profits were 1.06 Trillion won on revenues of 6.65 Trillion won.



Sales of handsets overall achieved similar volume as last quarter’s record of 46.3 million units sold, although handset markets globally contracted by about 13 percent. Reduction in marketing expenses and favorable currency exchange rates boosted first quarter results along with cost reduction efforts achieved through deployment of global SCM.



Steady Growth in LCDs

The LCD Business posted quarterly revenues of 4.34 trillion won on a parent basis. Operating profit grew 10 percent over the last quarter, reaching 1.01 trillion won with a profit margin of 23 percent. Robust sales of TV panels sized 46 inches and above, reaching more than a million units worldwide, helped to drive steady growth in LCD revenues, aided by the favorable currency exchange rate. Throughout the quarter, prices for LCD panels have not declined as significantly as expected, further contributing to the division's favorable results. Operating profit for the quarter, on a consolidated basis, reached 1.08 trillion won on revenues of 3.65 trillion won.



The LCD Business will enhance its competitive position by investing more than 3.7 trillion won in capital expenditures, as well as increasing sales of 46 inch and above TV panels and continued cost reduction efforts.



A Strategic Investment in Semiconductor

Weak prices amid weak seasonality diminished the semiconductor business unit’s overall results, contributing to lower revenue and profits compared with the fourth quarter of 2007. On a parent basis, operating profit of the Semiconductor Business in the first quarter was 190 billion won on revenue of 4.39 trillion won. Factors influencing sluggish demand for the industry overall included weak seasonality, oversupply of DRAM due to steady increases in 12” capacity, and over-emphasis on high-density products. In the case of NAND flash chips, the spot price for 8Gb MLC declined approximately 35 percent from the previous quarter, reflecting oversupply and slow demand for Card, USB, and MP3P products. At the same time, System LSI continued to demonstrate growth momentum due to strong demand for DDI, Smart Card IC and CIS.



Strong Seasonal Effects in Digital Media & Digital Appliance

The Digital Media Business posted an operating profit of 30 billion won on revenue of 1.83 trillion won on a parent basis. The unit’s operating profit and revenue on a consolidated basis reached approximately 210 billion won and more than 7.42 trillion won respectively. Sales of LCD TVs decreased approximately 15 percent quarter on quarter due to weak seasonal demand and severe competition. Nevertheless, Samsung expects to maintain its number one position globally in the Flat Panel TV market.



The Digital Appliance Division posted revenues of 820 billion won and continued to generate operating profits of 20 billion won. A modest increase in divisional revenues was attributed to seasonal sales of air-conditioners.

About Samsung Electronics

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2007 consolidated sales of US$103.4 billion. Employing approximately 150,000 people in 134 offices in 62 countries, the company consists of five main business units: Digital Media Business, LCD Business, Semiconductor Business, Telecommunication Business and Digital Appliance Business. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones and TFT-LCDs. For more information, please visit www.samsung.com.

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