Samsung says quarterly profit will come in below forecasts

Oct 7, 2010, 12:41 GMT

Seoul - South Korea's Samsung Electronics Co said Thursday that its third quarter profit would probably be below market expectations, a news report said.

In its earnings guidance the company said its operating profit for the third quarter would be 4.8 trillion won (4.3 billion US dollars), the Yonhap News agency reported.

The median estimate of 12 analysts questioned by Yonhap had estimated the company would post operating profit of 4.96 trillion won.

Samsung blamed weak demand for liquid-crystal display (LCD) panels for pushing down revenues. On Monday, Chang Won Kie, who heads the company's LCD division, said the market for the panels was 'very bad' in the third quarter.

Market researcher DisplaySearch said prices for 19-inch panels used in computer monitors fell 24 per cent in September from the previous quarter and by 13 per cent for 32-inch LCD television panels because of sluggish television sales around the world.

The company posted a record operating profit of 5.01 trillion won in the previous quarter.

Samsung estimated its consolidated sales would come in at 40 trillion won in the third quarter, up 11.5 per cent from last year.

The company is the world's biggest manufacturer of liquid-crystal display panels and memory chips and the second-largest maker of mobile phones.

Samsung is due to announce its third quarter earnings later this month.