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Corporate News : SAMSUNG Electronics Still Holds Strong in Telecommunication and Home Appliance Sector, Despite the f

Seoul, Korea, February 28, 1997(SEOUL): Samsung Electronics Co. (SEC), South Korea`s leading electronics manufacturer announced today at the 28th annual meeting of shareholders, its total sales of 15.9 trillion won (US$18.8 billion) for 1996,  a 2 fall from the 16.2 trillion won (US$20.9 billion) in 1995.

Net income fell 93 to 164.2 billion won (US$194.5 million), compared with 2.5 trillion won (US$3.2 billion) of 1995. The main reason behind such a drawback is the steep fall of the memory chips` market price -- generated by the oversupply of the market.  

However, despite such plunges in the semiconductor business, a remarkable growth of 67  was made in the telecommunications area last year, which in total sales comes to the figure of 2.6 trillion won.  Also, with a total sales of 5.1 trillion won, the consumer electronics business generated growth of 13.5, compared to the 4.5 trillion won in 1995; the factor of growth in this sector, comes from the success of the WorldBEST TV within the emerging markets such as the CIS, and China.

In addition, though the semiconductor and computer division recorded a total sales of   8.2 trillion won, which is a fall of 19.1 compared to the previous year, continuous growth of 22 has been kept steadily within the computer division.

Thus, despite the difficulty Samsung Electronics has faced during the past year,  introductions and developments of the 64-megabit, the 1-gigabit DRAM, the DVD, and the WorldBEST Plus TV  still holds strong Samsung`s position as a world class producer of high-tech electronic goods and devices.  Furthermore,  Samsung Electronics is eager in establishing itself once again as a leader in the non-memory area, mostly focused on the development of the Alpha chip (CPU), and the TFT-LCD.  Operation in the multimedia area will be also actively carried out.

Samsung Electronics Co., Ltd., headquarters based in Seoul, is a world leader in the electronics sector, with operations in more than 60 countries. The company develops, manufactures, and markets audio and video products, household electronics goods, computers & peripheral products, display products, telecommunication & information systems, software tools & semiconductors. Samsung Electronics employs over 70,000 people worldwide.

(Unit: Korean Won in billions)

item19961995RevenuesTOTAL   15,874.5
 (US$18.8billion)      16,189,8
(US$20.9billion)Domestic
 Export6,082.1
 9,792.34,949.3
 11,240.5ProfitsProfit Before Taxes223.63.006.5NET PROFIT164.2
 (US$194.5million)2,505.5
 (US$3.2billion)Note: Korean Won amounts are   converted into US dollars solely for
 readers` convenience, at the following rates:- 1995;  # US$ 1 = Won 774.7
 - 1996;
 # US$ 1 = Won 844.2

Source: Corporate News : SAMSUNG Electronics Still Holds Strong in Telecommunication and Home Appliance Sector, Despite the f

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