Samsung SDi is bleeding losses at a time when Samsung is witnessing record sales of flat panel TVs. The result could well see Samsung get out of the plasma market altogether.
Samsung SDI, a manufacturer of plasma display panels (PDPs) and cathode ray tubes for TVs, posted a worse-than-expected $150.9 million net loss. They blamed falling plasma TV prices for the result.
The company said continued forecasts for falling prices and compressed margins do not bode well for a significant turnaround in the near term.
The net loss in the April-June period compares with a $33 million net profit in the second quarter of last year and with an $84 million net loss from the previous quarter, according to company reports. Sales came in at $941 million.
At the same time, Samsung SDI posted an operating loss of $145.3 million, as the operating loss margin widened to 15.4 percent from a 12.6 percent loss in the first quarter.
The company’s PDP shipments rose 15 percent from the first quarter, but it said losses rose due to price compression. The company expects plasma panel price declines to slow somewhat in the in the second half.
Samsung SDI was the world’s top producer of PDPs in 2005, but it was eclipsed by Matsushita Electric Industrial Co. and LG Electronics in 2006.