SAN JOSE, Calif. Samsung Electronics Co. Ltd. on Tuesday (Feb. 28) raised its sales forecast for 2006, but its estimates were below market consensus, according to Reuters.
Samsung expects 2006 sales to rise to 65 trillion won ($67.11 billion), up from its forecast in January of 63.6 trillion won ($65.9 billion).
The forecast was above last year's 57.5 trillion won ($59.6 billion), but below the 66.2 trillion won ($68.6 billion) projected by Reuters.
Samsung (Seoul, South Korea) blamed the forecast on higher oil prices and volatile foreign exchange rates. Analysts are also expecting lower DRAM and flash-memory sales in 2006.
“Alongside the impact of a firmer won which has risen 3.6 percent against the dollar this year, analysts also point to potential risks for the firm from lower profitability in mobile phones, weaker flash memory chip prices and slower-than-expected cost reductions in the manufacture of flat panels,” according to the report.