Samsung Electronics flags record $14.7 bn Q1 operating profit In this April 6, 2018 file photo, An employee walks past logos of the Samsung Electronics Co. at its office in Seoul, South Korea. Samsung Electronics said Thursday, April 26, 2018 its first-quarter earnings jumped 52 percent over a year earlier thanks to its mainstay memory chips that posted another record-high quarterly profit. (AP Photo/Ahn Young-joon, File) The company also forecast the brisk earnings streak from its chip sector will continue through the second quarter as expansion of global data centers in the U.S. and China will keep demand for chips strong.Despite being one of the most profitable tech companies in history, neither Samsung nor South Koreans are in a celebratory mood. Samsung’s reputation is in tatters even after a Seoul high court released its leader Lee Jae-yong in February, suspending his sentence in a corruption scandal involving a former president.Samsung is facing another probe over a graft case involving former President Lee Myung-bak. Authorities also are investigating allegations that Samsung tried to break up a labor union at one of its affiliates. The company faces heightened pressure from the government to simplify a complicated ownership structure that has allowed its founding family, the Lees, to control the giant business while keeping only a minority stake.Meanwhile, an independent committee investigating Samsung’s handling of workers health issues and chemicals at its chip plants is stepping up pressure on the company to be more transparent about the chemicals it uses in production, for the sake of public safety.In its latest earnings statement, the South Korean tech giant said it recorded 11.7 trillion won ($10.8 billion) in January-March net income, up 52 percent from 7.7 trillion won a year earlier.The result slightly exceeded expectations of a 11.3 trillion won net profit, according to financial data provider FactSet.Sales rose 20 percent to 60.6 trillion won ($56.1 billion) while operating income surged 58 percent to 15.6 trillion won ($14.5 billion) during the period.Demand for consumer electronics products usually is slack in the first quarter of the year. But Samsung has been immune to seasonally shifting demand in the consumer electronics market thanks to its perennially lucrative memory chips business.The lion’s share, more than 70 percent or 11.55 trillion won ($10.7 billion), of its latest quarterly operating income was generated by the semiconductor division. Revenue was just 20.78 trillion won ($19.25 billion), a profit margin almost unheard of in the manufacturing industry.Samsung said its semiconductor division benefited from strong demand for server chips from global data center operators and chips that handle graphics and crypto-currency mining cards.Memory chips used to be a cutthroat market with multiple players with wide swings between gluts and shortages due to volatile demand. That changed with an industry restructuring that has left only a handful of global companies to meet tight supplies. Samsung and a few other memory chipmakers are benefiting from hefty investments by global internet companies to expand data centers and higher demand for chips that can handle more complex programs in mobile handsets.Samsung’s mobile phone division also helped its profitability, posting 3.77 trillion won ($3.49 billion) in quarterly operating income. Strong sales of the Galaxy S8 smartphone from last year despite the early release of its flagship Galaxy S9 smartphone showed that consumers are not enthusiastic about upgrading their phones to the latest products.Those two divisions helped Samsung offset weak performance in the display business, which counts Apple Inc. among its clients, and its home appliance division, which saw seasonally low demand for television sets. The display division logged lower profits for advanced panels called OLED and for LCD products.Going forward, Samsung forecast that that the memory chip business will likely stay strong, but increasing overall earnings will be a challenge given the weakness in its display business and lower profits in the mobile business. Citation: Samsung’s profit exceeds expectations thanks to memory chips (2018, April 26) retrieved 18 July 2019 from https://phys.org/news/2018-04-samsung-profit-memory-chips.html Samsung Electronics Co. reported better-than-expected financial results Thursday as robust demand from global data centers for its mainstay memory chips earned it another record-high quarterly profit. © 2018 The Associated Press. All rights reserved. Explore further This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
© 2018 AFP Citation: Air France-KLM boss resigns after staff reject pay deal (2018, May 4) retrieved 18 July 2019 from https://phys.org/news/2018-05-air-france-klm-boss-resigns-staff.html Air France CEO threatens to resign if strikes continue This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only. “I accept the consequences of this vote and will tender my resignation to the boards of Air France and Air France-KLM in coming days,” said Janaillac after 55.44 percent of Air France workers voted against accepting a pay rise of seven percent over four years. Unions said the increase was too little after years of restructuring during which pay was frozen, and demanded a 5.1 percent raise this year instead.Staff and management at the carrier have been locked in a dispute over pay since February.Janaillac, who had staked his future at the company on winning the vote, deplored Friday’s decision as a “huge waste”.”Air France was on the road to success. I regret that that dynamic was not understood (by staff),” he said.The vote came as workers began a 13th day of intermittent strikes Friday, prompting the cancellation of a quarter of flights on average.The move coincided with Air France-KLM’s release of first-quarter earnings, which showed a net loss of 269 million euros ($322 million), weighed down by three days of strikes during the period which cost about 25 million euros per day according to the company. “I accept the consequences of this vote and will tender my resignation to the boards of Air France and Air France-KLM in coming days,” said Jean-Marc Janaillac after 55.44 percent of Air France workers voted against a pay deal Explore further Air France-KLM boss Jean-Marc Janaillac announced his resignation Friday after staff at the carrier’s French operations rejected a pay deal aimed at ending weeks of strikes.