World Business

Samsung Electronics Q2 profit around $4b

(Xinhua)
Updated: 2010-07-07 15:15

SEOUL - World's largest memory chip maker Samsung Electronics said Wednesday that its operating profit is estimated to be around a record high of 5 trillion won ($4.11 billion).

According to Samsung's earnings guidance, its consolidated operating profit will likely stand in the range of 4.8 to 5.2 trillion won, while it predicted its consolidated sales to range in the 36 to 38 trillion won band.

The company's earning forecast is nearly a two-fold increase from a profit of 2.67 trillion won a year earlier, Samsung said.

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The actual results of its second-quarter performances are to be revealed later this week, it added.

The record-high profit came as the company saw a surge of gain in its chip and liquid-crystal display (LCD) panel businesses, according to local analysts.

While its dynamic random access memory (DRAM) chips saw a price gain on the back of recovering global demand for PCS, its newly- launched product lines, such as smartphones and tablet PCs, boosted demand for smartphones and tablet PCs, pulling up the company's overall profits.

Despite the earnings surprise, however, analysts remained skeptical of the third quarter earnings of Samsung Electronics, mainly due to denting macroeocnomic conditions, such as the sluggish global economy.

Amid analysts forecasting that the earnings peaked in the second quarter, shares of Samsung Electronics ended trading at 769, 000 won on the Seoul bourse, down 0.77 percent from a session earlier.