Samsung Nearly Doubles Q2 Net Profit

Samsung Electronics, the world's biggest maker of memory chips, display panels and TVs, posted a double-digit increase in its second-quarter profit. Samsung customarily announces preliminary results a few weeks earlier, thanks to strong growth in its components and handset businesses and the takeover of consumer electronics group Harman. Net profit increased to KRW 11.05 trillion from KRW 5.85 trillion a year ago, as sales rose 20 percent to KRW 61.00 trillion. Operating profit was up 72.9 percent to KRW 14.07 trillion, in line with the company's preliminary report.


The star performer was the semiconductor division, where operating profit more than tripled year-on-year to KRW 8.03 trillion thanks to strong demand from the server and smartphone memory markets. Harman also contributed KRW 2.15 trillion in revenue and KRW 0.01 trillion in operating profit.

The telecom division posted sales up 13 percent to KRW 30.01 trillion, with mobile phones growing 11 percent to KRW 28.92 trillion. Operating profit at the division fell to KRW 4.06 trillion from KRW 4.32 trillion a year ago. Samsung said sales were led by its flagship Galaxy S8 smartphone, while sales of mid-range and low-end phones declined. It also benefited from growth in LTE equipment sales.

Looking ahead, Samsung said it aims to maintain solid sales of its flagship products, through the release of the new Note model in August, while focusing on ensuring profitability for mid/low-end phones. Profits are expected to decline on a quarterly basis in Q3 due to increased marketing for the Note launch and a slowdown in S8 sales as the launch effect wears off.

July 27, 2017