Japanese Chemical Trader blog

Japan Chemical Trading Blog

Profit Drop and Restructuring of Samsung Group

An article in the morning edition of the Nikkei Newspaper dated April 8th says that, “Samsung Group has announced that the group’s net profit for fiscal year 2013 declined by 18% from the previous year, and the group has decided to merger some of its affiliates with poor performance including Samsung Petrochemical Company and Cheil Industries Inc.”

Samsung has improved performance significantly with its smartphone business and in order to get back on the growth track, the company needs to develop a new engine for growth on their own. Although it’s not an easy task, the company needs to cultivate a new source of revenue that would generate new values for the society.

It would also be indispensable to employ a more modern business management system including the termination of circular investments. I have a high expectation for this company as one of the leading companies in Asia.