Quarterly profit takes big hit as prices fall at Samsung SDI

Samsung SDI Co., the world’s third-largest maker of plasma displays, reported its second-lowest quarterly profit ever as prices fell and production at a factory increased slower than the company anticipated. Net income rose 17 percent to 30.3 billion won ($32 million) in the second quarter ended June 30, from a record low of 25.9 billion won a year earlier, the Suwon, Korea-based company said yesterday. Sales fell 8.8 percent to 1.2 trillion won. Average prices of Samsung SDI plasma panels fell 12 percent in the second quarter from a year earlier, according to estimates by Lehman Brothers Holdings Inc. analyst James Kim last week. Samsung SDI was expected to report a net income of 32.5 billion won and revenue of 1.3 trillion won, according to the median estimates of five analysts surveyed by Bloomberg News. Operating profit of 24.8 billion won beat the 21.5 billion won forecast in the survey. Samsung SDI said its No. 3 production line faced “unstable” production during the quarter. Concerns about the plant led analysts at brokerages including Credit Suisse Group and JPMorgan Chase & Co. to cut their earnings estimates for the company this month.