Samsung Electronics forecast on Friday a challenging business outlook due to growing competition, but said it was aiming to achieve record profit this year.
"Even amid continuing effects of the global financial crisis, Samsung was last year able to achieve its highest sales and net income since our establishment in 1969," said Geesung Choi, Vice Chairman and CEO of Samsung Electronics at the company's 42nd Annual General Meeting of Shareholders held on Friday morning in Seoul.
"2010 was a year in which we came out on top in the electronics industry and strengthened our position as a leading global company," he added.
Attended by shareholders and institutional investors, Samsung reported its balance sheet and confirmed the financial statements for full year 2010. Samsung?s consolidated revenue for the full year 2010 reached an all-time high of 154.63 trillion won, up 13-percent from the previous year. Consolidated net income also reached a record high of 16.15 trillion won.
Mr.Choi also stressed that 2011 will be a challenging year for electronics companies, as intensifying competition continues to put pressure on profit margins. He said Samsung will strive to maintain its sales growth momentum from last year and achieve new records in operating profits.
Mr. Choi said Samsung?s management strategy this year will focus on three main pillars: bolster market leadership through source differentiation in each business area; identifying and nurturing future businesses that will sustain growth for the next five to10 years; and integrating management capabilities to preemptively respond to business risks in times of market uncertainty.
Samsung aims at solidifing its leadership by securing a competitive edge in LCD panels, mobile devices and flat panel TVs, while further cultivating its System LSI, IT and home appliance units.
In line with its plans to promote future growth opportunities, Samsung will also respond to changes in the market as it becomes increasingly centered around software and solution services.
Samsung also said it would continue to aggressively enter new business areas such as health and medical equipment, while it also plans to become an industry leader in solar cells.