Updated: 17th December 2017

Samsung Electronics Q2 net surges 89 pct, sets new record high

It broke its previous all-time-high, posted in the third quarter of 2013, by more than nine-billion dollars.

Samsung Electronics, the world’s biggest maker of memory chips, display panels and TVs, posted a double-digit increase in its second-quarter profit thanks to brisk sales of semiconductors.

Operating profit jumped 73% over a year earlier to 14.1 trillion won while sales rose 20% to 61 trillion won, in line with its earlier guidance. The company’s net profit sharply rose by almost 44-percent from the previous quarter to record more than 9.9-billion dollars during the three months leading to June. Kim Ji-yeon, Arirang News.

The company forecasts increased sales of premium flexible OLED panels in the coming quarter due to its new supply to the USA tech giant Apple’ iPhone 8 although the competition with Chinese rivals remains. The Korean behemoth also said it saw strong demand for LTE equipment from overseas customers.

For the July-September period, however, Samsung said the mobile division’s operating profit may decline on-quarter due to the expanded marketing expenditures on the new phablet.

Samsung said it has 54 trillion won in net cash, an 11 trillion won decrease from the same time a year ago.

“Looking ahead to the third quarter, the company expects favorable semiconductor conditions to continue, although overall earnings may slightly decline quarter on quarter as earnings weaken for the display panel and mobile businesses”, the company said. During the three-month period, the company was forced to recall its Galaxy Note 7 smartphone, due to defective batteries, and was rocked by the prosecution of its billionaire heir, Lee Jae-yong.

The first-half facility investment is estimated at 22.5 trillion won, the company added. The company also moved aggressively into flexible OLED displays, short for organic light-emitting diodes, which enable phone makers to create sleeker, thinner devices.

Samsung added it expects challenges for the remainder of 2017 due to uncertainties at home and overseas.

Samsung’s share price closed down 0.1%, versus a 0.4% rise in the Kospi benchmark index.

Lee, 49, is facing bribery and embezzlement charges in connection with a national influence-peddling scandal that led to the ouster of President Park Geun-hye in March, which prosecutors say helped facilitate a merger that increased his sway over Samsung Electronics.

Visitors test Samsung Electronics Co.’s virtual reality devices at a company store in Seoul on July 27, 2017.

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