Samsung Electronics reports strong second quarter

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Samsung Electronics reports strong second quarter

Published: 07 Jul. 2021, 11:33

Samsung Electronics' semiconductor engineers at the company's plant in Hwaseong, Gyeonggi [SAMSUNG ELECTRONICS]

Samsung Electronics provisionally reported a 12.5 trillion won ($11.0 billion) operating profit in the second quarter, up 53.4 percent on year, on strong demand for computer chips.

It is a record for the company for a second quarter and higher than expectations. Analysts forecast second-quarter operating profit at 10.9 trillion won, according to FnGuide.

In the provision earnings statement released Wednesday, Samsung Electronics reported second quarter sales of 63 trillion won, up 18.9 percent on year and above analyst expectations of 61.3 trillion won.

Neither net profit nor segmentation were provided.

Prices of most microchips, including memory chips and microprocessors, have been on the rise amid global shortages.

Analysts forecast 7 trillion won to 8 trillion won of operating profit in the second quarter for the company's semiconductor division on demand from data centers and manufacturers of a wide range of electronic devices, such as PCs and tablets.

That would return the company's chip division to being its most profitable after being eclipsed by the smartphone division in the first quarter.

Operating profit from consumer electronics may have dipped below 1 trillion won as software and liquid crystal display costs rose.

BY PARK EUN-JEE [[email protected]]