Samsung achieves record net profit of $4.5-B in Q2

Agence France-Presse
The Korean company enjoyed strong smartphone sales despite the global downturn

SEOUL, South Korea – South Korea’s Samsung Electronics Friday posted a record net profit of 5.19 trillion won (US$4.53 billion) in the second quarter, powered by strong smartphone sales despite the global downturn.

The firm also reported a record operating profit in April-June of 6.72 trillion won.

The net profit figure represented a 48% gain from 3.506 trillion won a year earlier while operating profit jumped 79% year-on-year.

Samsung attributed its record figures to robust demand for mobile devices including high-margin smartphones, along with strong sales of its ultra-thin displays.

Total revenue rose 21% to 47.59 trillion won, in a quarter that is usually quieter for technology companies.

Analysts expect an even better performance in coming quarters, with smartphone earnings — which account for more than 50% of operating profit — remaining a strong contributor to the bottom line.

“The mobile division, which alone will see an operating profit of 4.8 trillion won in the third quarter, was helped by sales of the Galaxy S III smartphone, and it will lead the firm’s overall growth,” said Y.B. Oh, an analyst at Hanmag Securities.

The company has sold more than 10 million Galaxy S III models since its launch about two months ago.

Oh said the chip division would also register its biggest profit of around 1.6 trillion won in the third quarter, with prices expected to stabilise due to new product releases. – Agence France-Presse

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