Samsung, the Korea based memory chip and LCD TV giant, released a weak first quarter earnings estimate on Thursday.
Samsung estimated that it had made an operating profit of KRW 2.9 trillion or $2.7 billion, for the first quarter, which is down 34% from a year ago.
The sales figure, is estimated at between KRW 36 trillion and KRW 37.68 trillion, or around $34 billion, in line with analyst expectations. Samsung refrained from giving a net profit forecast.
Samsung’s financial report is being closely watched by the market as it can be used as a guideline for the demand for various technology products, keeping in mind the company’s diversified businesses, ranging from memory chip design, to mobile phones and LCDs.
The slow global economic recovery and the devastating Tsunami that hit Japan, may have affected the demand for consumer electronics.
Some experts are suggesting that the earthquake and Tsunami that devastated Japan last month may work in favour of Samsung, as many of the production facilities of their Japanese rivals have been severely disrupted. But they also raised the concern that, if the Japanese companies can not recover and resume their production within the next two months, components supply could be disrupted across the world, affecting all manufacturers.
Many analysts expect better earnings for Samsung in the coming quarters.