Samsung affiliates suffer weak earnings in Q1

Two thirds of Samsung Group's affiliates posted weaker than expected earnings in the first quarter amid weak economic conditions with the group's engineering and chemical units suffering the largest drop in their bottom lines, data showed Monday.

Ten out of 15 listed firms affiliated with Samsung Group, the nation's biggest conglomerate, posted earnings short of market estimates projected by more than three brokerage houses in the January-March period, according to the data compiled by market researcher FnGuide.

Operating profit of Cheil Industries Inc., Samsung's clothing arm and virtual holding company, had been forecast at 42.6 billion won in the first three months of this year, but the firm posted 6 billion won.

Samsung Heavy Industries Co., a shipbuilding unit, posted an earnings 74.7 percent below the earnings estimate at 26.3 billion due to prolonged slump in the global shipbuilding industry.

Samsung SDI Co., a chemical and battery subsidiary, saw its operating profit tumble 81.6 percent on-quarter to 6.8 billion won due to weak battery sales, 77 percent lower than the earnings estimate.

In contrast, Samsung Electronics Co., the world's largest phone maker and the group's flagship unit, managed to announce earnings that beat the market expectation. Its operating profit was 5.98 trillion won, higher than the market median of 5.9 trillion won, according to its regulatory filing. (Yonhap)