February 17, 2009 / 10:28 AM / 9 years ago

Samsung Elec to cut capex by 35 pct in 2009-paper

SEOUL, Feb 17 (Reuters) - Samsung Electronics (005930.KS), the world’s top maker of memory chips and flat screens, is planning to reduce its capital expenditure by 35 percent in 2009, a newspaper reported on Tuesday.

The company, which last month posted its first ever quarterly net loss because of the global downturn, is planning to spend about 7 trillion won ($4.85 billion) in 2009, down from 11.8 trillion won in 2008, the Korea Economic Daily said in its Wednesday edition.

The newspaper was quoting details of a survey conducted by the Federation of Korean Industries, the country’s main lobby group for large companies. Earlier on Tuesday, the FKI said the country’s top 600 companies planned to cut their capital investment by 2.5 percent this year, the first cut in eight years, as the global recession deepens [ID:nSEO339038].

James Chung, a Samsung spokesman, said: “Samsung has not yet finalized its investment plans.”

Samsung has so far declined to give official guidance on results or investments for this year, saying only that capital spending would drop sharply.

Last month, it estimated that “3-4 trillion won” was the minimum amount of investment required for its chips and LCD operations, compared with around 11 trillion won it spent in 2008.

Reporting by Marie-France Han; Editing by Kazunori Takada

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