Samsung announces first ever quarterly loss

Samsung Electronics, which is the world’s largest maker of LCD panels and televisions, has posted its first ever quarterly loss.

The company, which accounts for approximately 20% of South Korea’s annual exports, is regarded as the South Korean bellwether of the global consumer electronics industry.

Samsung’s loss follows news from software giant, Microsoft, who yesterday announced 5,000 job losses and a net profit of $4.17 billion (£3 billion) for the final quarter of 2008, 11% down compared with the same period the previous year.

Furthermore, this week, Japanese electronics giant Sony announced a profit warning, as did Nokia.

Samsung recorded a October-December net loss of ₩22.2 billion (£11.6 million), compared with ₩2.21 trillion the same period a year ago.

Following the grim news, the Nikkei 225 lost 306.49 points to close at 7,745.25 - its lowest level for two months.

Samsung said the fourth quarter is traditionally a strong period for electronics companies but the global economic downturn had an adverse affect.

The company has a workforce of 150,000 in over 60 countries.

The news come just days after economic growth in China, which is the world’s third-largest economy, slowed to 9% last year - the lowest rate of growth for seven years.

Furthermore, exports in Japan, the world’s second largest economy, plunged 35% in December - the sharpest fall ever, while figures showed that the South Korean economy contracted 3.4% in the last three months of 2008.

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