Samsung Elec to delay earnings until probe ends
SEOUL (Reuters) - Samsung Electronics Co Ltd (005930.KS) said on Friday it will release its first-quarter results on April 25, two days after the scheduled end of a probe into corruption allegations at Samsung Group.
Samsung Electronics, the flagship company of the Samsung Group, usually releases its quarterly results before the mid-point of the month.
"We decided it would be best to release earnings after the end of the special probe," said James Chung, a spokesman for Samsung Electronics.
A special prosecutor's investigation into allegations of corruption at Samsung Group SAGR.UL, South Korea's largest conglomerate, is set to end on April 23. Conclusions of the probe are expected before the end of the month.
"Samsung probably decided to wait until the end of the probe and release their earnings in a more decisive way," said Kim Young-june, an analyst at Kyobo Securities.
"Once the investigation is wrapped up, we can expect Samsung to be more forthcoming about investment plans and other issues," he said, referring to the company's reluctance in past months to release precise targets due to the probe.
South Korea launched the investigation in January in response to allegations by a former top legal executive at Samsung Group that the conglomerate kept a war chest of over $200 million dollars to bribe officials in order to squash investigations into its management practices.
Samsung Group has denied any wrongdoing and called the allegations groundless.
"The delay shouldn't have any impact on the stock," said Park Hyun, an analyst at Prudential Investment & Securities.
"The probe has been well publicized anyway and earnings are expected to come in solid compared with previous expectations."
Shares of Samsung, South Korea's biggest company, fell 1.21 percent to 654,000 won, underperforming the wider market's 0.08 percent decline.
Samsung Group chairman Lee Kun-hee is expected to appear before the special prosecutor later on Friday.
(Reporting by Rhee So-eui and Marie-France Han; editing by Keiron Henderson)
