Samsung Electronics Co., the world’s largest maker of televisions and memory chips, forecast that Japan’s worst earthquake on record and higher oil prices will undermine the global economic recovery this year.
That will probably prevent the electronics industry from experiencing much of an improvement in 2011, Samsung Electronics Chief Executive Officer Choi Gee Sung said during the company’s annual shareholders’ meeting in Seoul today. Samsung will continue to boost sales and profit by cutting production costs and developing premium products, Choi said.
Japanese companies may take as long as three months to restart their factories following last week’s earthquake and ensuing tsunami that crippled the nation, according to research firm IHS ISuppli. Oil surged in New York trading after the United Nations Security Council voted to ground Libyan leader Muammar Qaddafi’s air force, renewing concerns that unrest in the region may spread and disrupt supply.
“Because of the impact of oil prices at $100 and the aftermath of the earthquake in Japan, both advanced and emerging economies will decline,” Choi said.
Samsung shares fell 0.2 percent to 888,000 won as of 9:45 a.m., while the Kospi index gained 0.6 percent.
The Suwon, South Korea-based company, which posted record profit last year, plans to bolster market-share leads and expand in future-growth businesses such as software and medical- equipment business, the company said in a statement.
Source: www.bloomberg.com
That will probably prevent the electronics industry from experiencing much of an improvement in 2011, Samsung Electronics Chief Executive Officer Choi Gee Sung said during the company’s annual shareholders’ meeting in Seoul today. Samsung will continue to boost sales and profit by cutting production costs and developing premium products, Choi said.
Japanese companies may take as long as three months to restart their factories following last week’s earthquake and ensuing tsunami that crippled the nation, according to research firm IHS ISuppli. Oil surged in New York trading after the United Nations Security Council voted to ground Libyan leader Muammar Qaddafi’s air force, renewing concerns that unrest in the region may spread and disrupt supply.
“Because of the impact of oil prices at $100 and the aftermath of the earthquake in Japan, both advanced and emerging economies will decline,” Choi said.
Samsung shares fell 0.2 percent to 888,000 won as of 9:45 a.m., while the Kospi index gained 0.6 percent.
The Suwon, South Korea-based company, which posted record profit last year, plans to bolster market-share leads and expand in future-growth businesses such as software and medical- equipment business, the company said in a statement.
Source: www.bloomberg.com
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