Sony and Samsung added to the uncertainty over technology product demand by reporting losses for the final quarter of 2008 amid slowing economic conditions.
Falling prices lead to red ink at Samsung
Samsung Electronics on Friday posted its first quarterly loss since it began reporting quarterly finances in 2000. The company added that 2009 would be a difficult year.
Sony said late Thursday it had experienced its first annual loss in 14 years and that it would accelerate cost cutting
Both companies have dealt with falling consumer demand and soft prices for products such as LCDs and chips.
Samsung is the world’s largest manufacturer of flat-panel TVs, liquid crystal displays and memory chips. While its loss was relatively modest – about $14.4 million – the company said it had not escaped the global economic downturn.
In contrast of its other businesses, Samsung said mobile phones turned in a good quarter, rising to a record despite a 5 percent drop in the handset market. Nevertheless, trouble is ahead. The handset market in developed countries will decline by at least 10 percent in 2009 to 2004 levels, the company said.
Samsung has announced a major restructuring.
Sony, which makes Bravia LCD televisions and the PlayStation 3 game machine, said weak demand, the stronger yen and restructuring costs contributed to its loss.
The company will respond with a restructuring, doubling its cost-cutting target for the year.
Also reporting a loss on Thursday was South Korea’s LG Electronics.
