Samsung Electronics Seeks to Double Sales

Thursday November 3, 5:49 am ET

By Kelly Olsen, AP Business Writer

Samsung Electronics Says It Wants to More Than Double Sales by 2010

SEOUL, South Korea (AP) -- Samsung Electronics Co. set a series of ambitious goals Thursday, including more than doubling sales and seizing top global market share in 20 products by 2010, top executives said.

Chief Executive Officer Yun Jong-yong and other officials met for the first time with industry analysts and investors to share information about the company`s outlook and showcase its emergence as a world-leading manufacturer of both consumer electronics and key components like memory chips that make them work.

Yun said Samsung aimed to be ``one of the top three electronics companies in the world in quantity and quality by 2010, by increasing the number of our leading market share products from the current eight to more than 20 products and also by more than doubling our 2004 sales.``

Samsung, the world`s largest memory chip maker and a top producer of consumer electronics, including flat-screen televisions, mobile phone handsets, MP3 players and laptop computers, recorded sales of 78.9 trillion won ($76 billion) in 2004.

The company, which employees over 113,000 people in 48 countries, said that holding the special session for analysts, investors and experts in information technology was to increase ``the confidence shareholders have in Samsung.``

Samsung has emerged as a first-class technology company with global name recognition thanks to its sleek flat-screen televisions and gadget-laden mobile phones. Executives like Hwang Chang-gyu, president of its semiconductor business, have contacts with other high-tech captains of industry like Apple Computer Inc.`s Steve Jobs and Microsoft Corp.`s Bill Gates.

Still, amid its rise the company has suffered some negative publicity, including a price-fixing fine of $300 million levied last month in the United States over accusations it secretly conspired with industry rivals to fix chip prices.

In 2001, a South Korean court ruled in favor of minority shareholders who sued Samsung Electronics in 1998, accusing it of illegal internal trading that caused losses and hurt its share price.

The court found executives, including Lee-Kun-hee, chairman of the Samsung Group, legally responsible for mismanagement, marking a victory for civic groups fighting to end widespread illegal practices among family controlled conglomerates, or chaebol.

Analysts were positive about Samsung`s chances of achieving its forecasts.

``I think it will be possible,`` said Minhee Lee, a senior analyst at Seoul-based CJ Investment & Securities. ``Samsung has a diversified business structure -- displays, semiconductors and digital media.``

Besides being South Korea`s largest company, Samsung is the world`s second-biggest semiconductor maker after Intel Corp. and vies with domestic rival LG Philips LCD Co. for the top spot among manufacturers of liquid crystal displays, or LCDs.

One of the secrets to Samsung`s emergence as a top technology company has been its emphasis on research and development even during tough times, such as the 2001 collapse in semiconductor prices and other downturns.

In September, the company announced a seven-year, $33 billion capital investment plan that it expects to create 14,000 new jobs in South Korea. Semiconductor revenue will reach $61 billion in 2012 a near quadrupling from 2004.

``As of last year we has 26,000 R&D researchers,`` Lee Yoon-woo, Samsung`s chief technology officer, told reporters Thursday. ``We plan to increase that to 52,000 by 2010.``

Samsung said last month that third-quarter net profit fell a sharp 30 percent from the year before, hit by lower chip prices and the U.S. price-fixing fine, two-thirds of which was booked in the three months ended Sept. 30.

Samsung shares rose 2.1 percent to close at 587,000 won ($563).