Samsung sees record quarterly profit
SEOUL: Samsung Electronics expects profits to soar 72 per cent in the second quarter to a record high, it said yesterday - as it moves on from a recall debacle - thanks to rising memory chip prices and increased demand for smartphones.
The South Korean tech giant estimated its operating profit for April to June at 14 trillion won (S$16 billion), up from 8.14 trillion won a year earlier.
That would reportedly make it more profitable in the period than US behemoth Apple, where consensus analyst forecasts point to a profit of US$10.6 billion (S$14 billion).
It would also be Samsung Electronics' highest-ever quarterly operating profit, surpassing the 10.1 trillion won of the third quarter of 2013.
Samsung apparently benefited from increased shipments and strong prices for DRAM and NAND semiconductor chips, as it moved on from the Galaxy Note 7 recall fiasco last year and the corruption trial of its detained vice-chairman Lee Jae Yong.
Brisk sales of its new flagship Galaxy S8 smartphones, rising demand for flexible OLED products as well as soaring LCD panel prices also drove its earnings, analysts said.
Samsung withholds sector-by-sector business performance until it releases its final earnings report later this month.
But Mr Greg Roh of HMC Investment Securities told AFP: "All the three sectors - semiconductor business, display and smartphone business - are all believed to have performed well. This is a better-than-expected performance."
The earnings forecast surpassed a market consensus of around 13.2 trillion won compiled by FnGuide, a financial information service provider.
Sales for the April to June period are expected to surge 17.8 per cent on-year to 60 trillion won. - AFP