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Sat, Jul 25, 2009 - Page 10 News List

Samsung Electronics says Q2 results ‘outstanding’

AFP , SEOUL

A sales clerk arranges mobile phones at Samsung Electronics Co’s store in Seoul yesterday. The company’s quarterly profit climbed to its highest level in more than two years, exceeding analysts’ estimates, fueled by higher sales of TVs and mobile phones.

PHOTO: BLOOMBERG

Samsung Electronics Co, the world’s leading computer memory chipmaker, yesterday posted what it called “outstanding” second-quarter results due to a recovery in prices and demand.

For the three months last month, it recorded a net profit of 2.25 trillion won (US$1.8 billion), up 65.6 percent from the previous quarter’s 619 billion won. It is also 5.2 percent up year on year.

Samsung, which is also the world’s largest flat-screen TV maker and the second-largest mobile phone producer, said it achieved strong revenue growth and profit despite continued uncertainty in the global market.

The sustained recovery was supported by renewed demand for premium consumer electronics and improved pricing for memory semiconductors and LCD panels, it said.

“Samsung achieved outstanding results in the second quarter with our consumer electronics business remaining strong and a solid performance in the still challenging components market,” Robert Yi, head of Samsung’s investor relations team, said in a statement.

Sales rose to 32.51 trillion won from 29.1 trillion won a year earlier. But he cautioned that operating profit — which rose to 2.52 trillion won in the second quarter, from 2.4 trillion won a year earlier — may be pressured by competition and the appreciation of the won.

Onlookers said the gains were likely to carry on.

“Samsung’s performance was better than expected. It will continue to post strong earnings in the second half,” Daewoo Securities analyst James Song said.

He said Samsung would expand its global market share in the mobile phone sector.

Samsung said its semiconductor sales rose 7.2 percent year-on-year to 6.14 trillion won in the three months last month. The firm forecast continued improvement in demand but said increased supply could have a dampening effect on prices.

Samsung said its LCD division saw revenue fall 8.1 percent year-on-year to 5.1 trillion won while its telecoms divisions, mostly mobile phones, posted revenue of 10.04 trillion won, a 27.4 percent increase year-on-year.

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