AMSTERDAM – Consumer Electronics company Philips' first-quarter profits fell by 75% on lowering TV sales, mainly in the U.S.  The company reported net income of $347 million, nearly 20% off what analysts had forecast.

Net profit was approximately $1.4 billion for the same period last year, when the company sold a percentage of its share in the Taiwan Semiconductor Manufacturing Company for $1.16 billion.
 
Pierre-Jean Sivignon commented on the strong competition in the TV market, stating that "The U.S. remains the black spot, but when we look at the quarter it was tough all across.”

Last week, the company announced it would stop making TVs for the North American market, where its sales were down 9% in the first quarter, and that it would license Funai Electric Company of Japan to market the Philips and Magnavox brands in the U.S. and Canada for five years. Industry reports say that the company will take steps to make its global supply base more efficient, and focus its TV business on stronger markets in Europe and other developing countries.

The company did show a gain of $131 million for the partial sale of LG Display, Philips said, and revenue losses were balanced by sales in the company's medical ultrasound and other imaging equipment segments, where sales grew 5 percent over the same quarter in 2007, and equipment orders increased by 9 percent, as reported by the company.

SEOUL, SOUTH KOREA - After being questioned for the second time on alleged bribery of South Korean prosecutors and judges, Samsung group chairman Lee Kun-hee has stated that he, as well as others, would consider resigning to revamp the management group, according to reports. 

An independent counsel appointed by South Korea's National Assembly began a probe in January to investigate the charges.  It has until April 23 to investigate and collect evidence.
 

In November 2007, a former lawyer for Samsung claimed that the conglomerate had $205 million in a slush fund used to bribe prosecutors and judges. The same lawyer also alleged that Lee’s wife, who heads a Samsung sponsored art museum, used some of the money to buy expensive paintings from abroad.

Investigators are also reportedly looking into allegations accusing the company ownership structure of conducting questionable transactions between subsidiaries to help the company’s controlling families to evade taxes and transfer wealth to heirs.

While Samsung has denied all allegations, Lee said, “I will deeply think about reshuffling the corporate management structure and the management lineup, including myself.” Lee also reportedly said that would assume blame for the scandal and would "take full responsibility, either morally or legally."

The caveat here is that the company has reportedly said that Lee's statements were provisional, and that his actions will depend upon whether the investigation uncovers any wrongdoing.