Samsung OZ Reports $24M In Losses, Still Looking For Senior Exec’s
Samsung Electronics is expected to this week deliver an all-time record global profit, the same cannot be said for the local operation who during the past two financial years have reported losses of over $24.8M.
In 2016 Samsung Electronics Australia reported losses of $3.4M, in 2015 the local operation reported losses of $21.3 million, revenues in 2015 were $2.48 billion, in the last financial year this fell to $2.3B in 2016.
It not known what impact the recall of Samsung washing machines, or the recall of the Samsung Galaxy Note 7 had on the Companies local revenues.
During the past 24 months the Company has lost several senior executives and two Vice Presidents along with years of retailing and marketing experience.
The Vice President, of Samsung Australia’s Mobile Division, Prasad Gokhale quit after just 32 months in the role.
The man who replaced him Richard Fink the Vice President of IT and Samsung’s Mobile Division quit, just 11 months into the job.
He is the third VP to have quit running the mobile division during the past four years, Prior to Gokhale, the division was run by Tyler McGee, under his management Samsung became a formidable mobile force in the mobile market in Australia.
Then in August 2017, Phil Newton, the Corporate Vice President and Chief Marketing Officer at Samsung Australia, quit after nine years in the job. He left the company in August.
During the past four months the Australian operation has been looking for a new head of marketing, as well as a senior executive to head up their Communications Division.
ChannelNews understands that after interviewing several experienced communication executives Garry McGregor, Director, IT and Mobile, Samsung Electronics Australia is set to be given the job of running this division.
McGregor a more than capable executive stepped up to the role after Fink quit.
Globally Samsung is expected to deliver all-time high profits when it reports third-quarter results on Tuesday.
However, the big question is who will lead the company to future success and how following the shock resignation last month of Kwon Oh-hyun one of the Companies most senior executives who headed up their highly profitable components business.
Currently the Companies Chairman Jay Y Lee is incapacitated, due to the fact, that he is serving a five year stretch in a Korean jail after being found guilty of bribery charges.
Right now Samsung is grappling with what steps to take next with the absence of its de facto leader, Mr. Lee has appealed the decision and is undergoing a higher court trial.
Globally the company’s current business operations are thriving though, some analysts are tipping that over time their component division could come under pressure as Apple a key Samsung client, invests in component Companies and manufacturers such as Sharp move to expand their OLED manufacturing operations. Last week they acquired a New Zealand wireless charging Company.
On Tuesday Samsung is expected to deliver US$12.9 billion profit for the three months ended Sept. 30 which is more than enough to support Samsung Electronics Australia losses.
The results would top the previous all-time high delivered in the previous quarter. Samsung shares have risen about 45% this year, as the company shrugged off last year’s global recall of fire-prone Galaxy Note 7 devices that ultimately cost it around $6.5 billion.
Currently the Samsung Australia only lists one member of their Australian executive team this is Mr. Yong Sung Jeon, President and Chief Executive Officer, Southeast Asia Headquarters, Samsung Electronics, he was appointed to the role of President and CEO of Samsung Electronics South East Asia & Oceania in February 2015.
Prior to this, Mr. Jeon was the President of Thai Samsung Electronics from January 2013 where he oversaw and strengthened the subsidiary’s business performance.