Net Profit of Samsung Electronics Nearly Equals GE’s

For the first time ever, Samsung Electronics’ operating profit and net profit surpassed four trillion and three trillion won, respectively, in the first quarter of this year.

Samsung Electronics announced on April 16 that it posted 14.4136 trillion won in sales and that its operating profit and net profit amounted to 4.0089 trillion won and 3.14 trillion won, respectively, in the first quarter of this year.

Its first quarter net profit is nearly equal to that of the U.S.’ General Electric (GE), which has the largest aggregate value of listed stock. Particularly, when GE’s financial business, which accounts for 33 percent of total sales, is excluded, Samsung Electronics’ net profit is estimated to surpass GE`s.

When compared to the last quarter of 2003, its sales, operating profit, and net profit increased by 11.9 percent, 52.6 percent and 68.7 percent, respectively.

Its sales and operating profit has been renewing records since the third quarter of last year.

Joo Woo-sik, a managing director of Samsung Electronics, said that the recent increase of DRAM price, stabilization of liquid crystal display (LCD)’s price, and satisfactory sales of cell phones brought such results, adding that the company succeeded in maintaining growth in spite of the tendency that the results in the first quarter usually decreases during this season.

Concerning the results of the second quarter of this year and afterwards, he added that the company anticipates it will continue growing by overcoming expected problems, such as the decrease in flash memory’s prices and the oversupply of LCD.

Jin-Suk Huh jameshuh@donga.com