Samsung posts losses, maintains strength in telecommunications

Like the majority of its fellow electronics companies this week, Samsung today posted a loss for the fourth quarter of 2008.

The South Korean CE maker renowned for its displays and responsible for the much of the growth in the flash memory market lost $14.4 million for the quarter ending on New Year's Eve.

A statement from the company this morning said, "The global economic slowdown had an adverse effect on consumer purchases of electronics goods in the fourth quarter, traditionally a strong period for electronics companies."

Of the company's four businesses -- Semiconductor, LCD, Telecom, and Digital Media -- only Telecom saw an increase in the fourth quarter. Sales of handsets were lower than expected and Christmas sales were weak in developed markets, but Samsung still managed to increase its shipments 22% year-over-year. For 2009, the company expects the handset market will contract 5 to 10% as replacement demand decreases.

Samsung also experienced growth in mobile WiMAX equipment sales both in the US with Sprint/Clearwire and Japan with UQ, and expects to maintain its growth rate as services expand to more major markets.

The company announced last week that it will be restructuring into consumer electronics and component divisions to fine-tune its operating costs, an area where Samsung incurred the majority of its debt.