HMC Investment Securities took the lead by expecting 25 billion won in operating profit in the first quarter. In this climate, a growing number of domestic brokerages expect Samsung to turn to positive territory in the first quarter, results of which will be released April 24. ``In my view, the personnel management schedule is one reason Samsung wrote off costs mainly in the final quarter,'' he said. Hence, executives don't have any incentive to make the fourth-quarter performance look good,'' a Samsung insider said. ``Evaluations on Samsung executives finish in late November or early December. In comparison, the amount more than doubled for the October-December period of 2008, rising 35.2 percent from the third quarter. Samsung Electronics' average fourth-quarter expenditures on marketing and management went up by 442 billion won from the previous quarter, or 24.77 percent, from 2000 through 2007.įor example, the difference was 503 billion won (22.15 percent) in 2005, 477 billion won (20.12 percent) in 2006 and 463 billion won (17.7 percent) in 2007. However, I don't think that the company would have used illegal methods,'' he said. ``This makes people suspect that Samsung wrote off certain losses aggressively. But last year, the expenditure was too large compared to prior quarters,'' said a Seoul analyst who covers Samsung Electronics. ``Samsung Electronics has spent the most in marketing over the final quarter. It was the first quarterly operating loss of the world's top memory chipmaker since 2000, and was caused by rising marketing and management costs of 4.4 trillion won, up 1.15 trillion won from the previous quarter. Back then, the market consensus on the loss was around 400 billion won. Samsung Electronics is accused of having employed this strategy _ dubbed big bath accounting _ over the fourth quarter of 2008 when it posted a record operating loss of 937 billion won. When a corporation is destined to chalk up a loss, it's tempted to maximize the reported loss in one specific period so that its future years will appear better.
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