Samsung cuts sales forecast

South Korean models display Samsung Electronics' new digital mobile phone, Anycall Haptic SCH-W420, during its unveiling ceremony in Seoul, South Korea Tuesday, March 25, 2008. Samsung Electronics on Tuesday announced the launch of the new Samsung Anycall Haptic SCH-W420, a powerful high speed multimedia phone with a touch sensitive 16:9 wide screen and intuitive user interface. (AP Photo/Ahn Young-joon)

SEOUL, South Korea—Samsung Electronics Co. trimmed its sales forecast for this year on global economic woes, but said profit will increase, helped by earnings growth in key areas such as memory chips, flat-panel displays and mobile handsets.

"Global economic uncertainty will continue this year, affecting our management conditions," Chief Executive Yun Jong-yong said Friday at the annual shareholders' meeting. "We expect competition to become fiercer globally amid higher oil prices and the dollar's weakness."

Samsung aims to raise its 2008 sales by 10 percent on year, Yun said, without providing specific figures. The forecast is lower than the 15 percent on-year increase it projected in January.

But Yun said he expects Samsung's profit in 2008 to be higher than last year's as the company focuses on its four key businesses -- semiconductors, handsets, LCD panels and TV sets.

Capital investment will be at a similar level to that of last year, he added.

Samsung, the world's largest memory chip maker, posted 7.43 trillion won ($7.61 billion) in net profit in 2007 on a parent basis, up 12 percent from a year earlier. Sales rose 7 percent to 63.18 trillion won ($64.7 billion).

Some analysts expect Samsung to report first-quarter results next month with the chip business in the red for the first time since 2001, weighed by a sharp fall in chip prices.

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