Samsung 2005 Annual Report Download - page 9

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7
Dear Customers, Partners, and Shareholders,
In retrospect, 2005 was an eventful year both at home and abroad: Many parts of
the world struggled with natural disasters including earthquakes and hurricanes.
The global economy was hit with record high oil prices of over USD 60 per barrel,
while increased competition created predatory pricing in global markets. In the
domestic market, we experienced a sharp surge in raw material prices and the
appreciation of the Korean won against major global currencies. Despite these
challenging business conditions, and driven by the innovations begun in our “New
Management Initiatives” of 1993, Samsung Electronics posted annual average
operating profits for the last four years of KRW 8 trillion, reaffirming our superb
profitability on a world-class level.
The highlights of our achievements in 2005 include with sales of USD 79.6 billion
and operating profits of USD 7.48 billion. The operating profit margin of our
semiconductor business reached an industry high level of 27% due to the strong
sales of high value-added products like our high-density NAND flash memories.
In handsets, we shipped over 100 million units thanks to global hits like our blue-
black phones, the D500 and D600. In LCDs, the successful ramp-up of our Line 7-1,
the S-LCD joint venture line with Sony, enabled the company to enhance its top
position in the LCD panel market and to lead the growth of digital TVs.