Samsung Earnings Miss the Mark

Shares of the electronics giant fell 6.2% in Korea after profits didn't meet expectations. Samsung's business environment is also a concern At first blush, the quarterly results for Samsung Electronics don't look so bad. The Korean company on July 25 announced a 51% year-on-year rise in its second-quarter net earnings, a 12% profit margin on sales of $18 billion. But that fell short of expectations and was 2% lower than the previous quarter, largely due to the U.S. credit crunch and high oil prices. Still, while Samsung's $2.12 billion net income may have been some $200 million less than what many corporate analysts had forecast, the company managed a better performance than most of its rivals. Yet a closer look at its strategy and its business environment makes investors feel uncomfortable, to say the least. After the... [read full story]