Samsung Q1 2008 Profit Rises 37%

“AM South Korean conglomerate Samsung Electronics Co. Ltd. (SSNLF.PK) reported a 37% surge in its profit for the first quarter, as strong sales of flat-panel displays and mobile handsets offset a weak performance at its computer chip division. Revenue for the quarter climbed 19%. The company expects sales volume and panel prices to increase in the second quarter for its LCD business, and expects stagnant memory market will continue throughout the second quarter for its semiconductor division. The results come on the heels of the indictment of the company’s chairman Lee Kun Hee last week on charges of tax evasion and breach of trust, after a protracted probe into allegations of corruption at the company. However, dropped bribery charges against the company’s chairman was dropped by the special prosecutor, Cho Joon Woong, who said that his special investigation team was unable to gather requisite evidence to prove the charge. According to Woong, Lee is guilty of avoiding 113 billion won or US$114.3 million in taxes by using other people’s names to execute profitable stock transactions. Nine other executives, including Vice Chairman Lee Hak-soo, were also charged.Last month, Samsung slashed its sales growth outlook for the year 2008 citing the economic downturn globally. At its annual shareholders’ meeting in Seoul, the company’s Chief Executive Yun Jong-yong said he expects sales growth of over 10% for 2008 compared to the company’s forecast in February of 15% plus sales growth.” Read more here: