Home Economy Samsung Electronics posts record second-quarter profit

Samsung Electronics posts record second-quarter profit


Seoul : South Korean electronics giant Samsung Electronics Co Friday posted a record 83 percent net profit rise for the second quarter, boosted by strong demand for chips and flatscreen televisions.

The net profit of the world’s largest semiconductor maker rose to 4.28 trillion won ($3.6 billion) from 2.33 trillion won year on year.

Operating profit was up 88 percent in the three months through June to 5 trillion won. Sales increased by 17 percent to 37.99 trillion won.

“In the second quarter, our component businesses performed very strongly, yet it was a more challenging quarter for our set businesses,” said Robert Yi, head of Samsung’s investor relations, in a statement.

The company profited from a recovery of the computer industry and strong demand for consumer electronics, which drove up prices for key components such as chips and liquid crystal displays for TVs.

However, average sale prices for mobile phones declined because of stronger competition, the world’s second-largest handset maker after Finland’s Nokia Corp said.

Mobile phone shipments increased by 22 percent year-on-year to 63.8 million units, but were down from 64.3 million units in the first quarter.

Samsung’s semiconductor unit posted an almost eightfold increase in its operating profit to 2.94 trillion won.

Samsung expects its third-quarter performance to be driven by strong demand for core components, but warns against declining profit margins due to falling TV prices.