Lower chip prices drive Samsung profits down 52%

South Korean equipment manufacturer Samsung posted a 52% drop in profits to KRW1.5 trillion (USD1.47 billion) for the three months to 31 March 2005, as falling prices for chips and LCD displays impacted hard on its bottom line. Operating profit plummeted by 46% to KRW2.15 trillion and sales dipped by 4.2% to KRW13.8 trillion. The vendor was expected to report net income of KRW2.17 trillion on sales of KRW14.25 trillion. Nonetheless, its chief executive is hopeful that a recovery in demand in 2005 will justify his company’s plan to invest more on plant and equipment in the coming year.