SEOUL - Samsung Electronics, the world's largest memory chip maker, announced conservative business plans Monday, citing unfavorable market conditions such as the won's sharp appreciation against the dollar for a cautious outlook.
Samsung president Yun Jong-Yong said the company set this year's sales target "conservatively" at 58.1 trillion won (57.6 billion dollars), up from last year's 57.6 trillion won.
"The company will revamp its business structure this year to focus on high value-added products," Yun said at an annual shareholders meeting.
He said the company would see slow earnings growth this year due to weak domestic consumption, the won's steady gains against the dollar and China's efforts to cool its economy.
The profitability of Samsung's mobile phone business has declined due to a price war with global rivals Nokia and Motorola.
The company plans capital expenditure of 10.4 trillion won this year.
Samsung's cash reserves stood at seven trillion won, with its net profit hitting a record 10.8 trillion won last year.
02/28/2005 03:12 GMT