Samsung Corp Expects Loss of US$80 MLN From Futures Trading

[HenryTo]

This is interesting - wonder if there are any "whales" out there that died and have yet to resurface? Given the recent action of copper, crude, and Treasuries it is not inconceivable to me that there would be more victims out there.
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Samsung Corp Expects Loss of US$80 MLN From Futures Trading

SEOUL, June 24 Asia Pulse - Samsung Corp. (KSE:000830), a leading South Korean general trading company, said Friday that its Hong Kong subsidiary stands to lose US$80 million from trading in metal futures.
"Our subsidiary in Hong Kong is expected to suffer the loss from copper futures trading," the company said in a mandatory filing. "We are still confirming the exact nature of the loss through a local futures broker."

The news sent its share price tumbling 10.60 per cent to 13,500 won ($13.37). Samsung Corp. is the trading arm of South Korea's top conglomerate, Samsung Group.

The Hong Kong subsidiary, which opened for trading in 1977, posted a net loss of 60.3 billion won upon sales of 970 billion won last year.

The expected loss exceeds Samsung Corp.'s net profit of 77.1 billion won last year and is expected to make a dent in its 2005 earnings. The company is projected to book a net profit of 160 billion won this year.

Market watchers said the loss will cause Samsung Corp.'s stock price to lose ground down the road.

"Though it is seen as a one-off loss, the amount is considerable," said Park Jong-ryeul, an analyst at Kyobo Securities. "A further fall in its share price seems inevitable."

Investors may dump its shares as they now know that the company remains exposed to losses from its overseas operations, he added.