360° Coverage : Samsung's Q2 earnings hit new high on smartphone sales

Samsung's Q2 earnings hit new high on smartphone sales

Seoul, July 26 (IANS) Samsung Electronics, the world's largest maker of handsets, memory chips and flat screens, said Friday that its operating profit hit a new quarterly high in the second quarter on robust demand for its flagship smartphones and mobile device-related components.

Jul 26 2013, 2:38am CDT | by IANS

Samsung's Q2 earnings hit new high on smartphone sales
Photo Credit: JUNG YEON-JE, Getty Images

Seoul, July 26 — Samsung Electronics, the world's largest maker of handsets, memory chips and flat screens, said Friday that its operating profit hit a new quarterly high in the second quarter on robust demand for its flagship smartphones and mobile device-related components.

Operating profit jumped 47.5 percent from a year earlier to 9.53 trillion won ($8.54 billion) in the three months ending June 30, the company said in a statement.

The figure topped the previous record high of 8.84 trillion won tallied in the fourth quarter of last year, reported Xinhua.

Sales increased 20.73 percent year-on-year to 57.46 trillion won in the second quarter, breaching the prior high of 56.06 trillion won registered in the fourth quarter of 2012.

Net profit was 7.77 trillion won, up 49.69 percent from a year earlier and rising 8.65 percent from three months ago.

The IT & Mobile Communications (IM) division, which makes handsets, logged an operating profit of 6.28 trillion won on a revenue of 35.54 trillion won, which accounted for more than 60 percent of the total sales.

Solid sales of Samsung flagship Galaxy S4 and Galaxy Note 8.0 drove the outperformance. Sales of Galaxy S4, the latest version of the Galaxy series, were estimated at over 20 million units during the quarter. Combine sales of smartphones, including previous models such as Galaxy S3, were estimated at 74.5 million units, up 5.7 percent from three months earlier.

The semiconductor business registered 8.68 trillion won in revenue. Global demand for PC DRAM remained weak, but orders for high value-added server and mobile DRAMs stayed strong, the company said, noting that steady demand for affordable smartphones and tablets shored up NAND sales.

Samsung planned to ramp up sales of application processors, saying that demand for the components would grow as mobile devices needing more processing power roll out into market in the remaining quarters.

The display panel business posted an operating profit of 1.12 trillion won on a revenue of 8.18 trillion won in the second quarter. The revenue jumped 46 percent compared with three months earlier on the back of sales in high value-added panels.

The company said it improved profitability in the quarter by expanding sales in high value-added products such as high- resolution display for tablets, large-size premium TV panels and OLED displays for smartphones.

The TV-making consumer electronics division logged an operating profit of 430 billion won on a revenue of 12.78 trillion won. Sales of premium TVs and strong seasonality for air conditioners helped improve the division's sales performance.

Samsung drew a rosy picture for future earnings. "We expect to improve profit yields in the second half due to high-margin, differentiated components products, as well as gains stemming from increased smartphone and TV shipments," said Robert Yi, senior vice president of Samsung.

Samsung spent 5.2 trillion won on facility investment in the second quarter. A total of 9 trillion won, or 38 percent of this year's planned capital expenditure, was made in the first half of 2013.

IANS

Source: IANS

 
 
 

blog comments powered by Disqus

Latest stories

Wearables that go beyond the Apple Watch
Wearables that go beyond the Apple Watch
Apple Watch is going to open a new chapter in wearables, but where is the future?
 
 
Russia allows buffalo meat imports from India
Moscow, Dec 4 (IANS/TASS) Russia has allowed imports of buffalo meat from India, the country's veterinary regulator said Thursday.
 
 
New guidelines for prostate cancer testing
Melbourne, Dec 4 (IANS) Prostate cancer checks in Australia are set to improve after cancer agencies and health experts reached an agreement on new testing guidelines at the World Cancer Congress (WCC) currently being held in Melbourne.
 
 
Australian researcher discovers first artwork by early human
Sydney, Dec 4 (IANS) An Australian researcher has discovered what is believed to be the first artwork created by a human.
 
 
 

Latest from the Network

Australian researcher discovers first artwork by early human
Sydney, Dec 4 (IANS) An Australian researcher has discovered what is believed to be the first artwork created by a human. The simple zigzag pattern found on a fossilized shell from the Indonesian island of Java has...
Read more on Celebrity Balla
 
Insects compete with rats to clear garbage
New York, Dec 4 (IANS) Insects play a very important role in cleaning up cities and they compete with other pests like rats and pigeons in their endeavour, a study has said. Scientists sampled arthropods - such as...
Read more on Business Balla
 
School headmaster shot dead in Pakistan
Islamabad, Dec 4 (IANS) Unidentified gunmen Thursday killed the headmaster of a private school in Pakistan's Balochistan province. Police officials said the armed men opened fire at the vehicle of Zahid Ali,...
Read more on Politics Balla
 
Four more bodies recovered from sunken South Korean ship
Seoul, Dec 4 (IANS) Four more bodies were recovered Thursday from a sunken South Korean fishing ship in the Bering Sea, the foreign ministry here said. This increased the toll to 16, including six South Koreans and 10...
Read more on Politics Balla
 
Lesbian couple asked to desist in London restaurant
London, Dec 4 (IANS) A lesbian couple in a London restaurant was asked to desist by a staff member, who asked them to "stop what you are doing". Lydia Cawson, 29, said that she and her girlfriend were asked by a staff...
Read more on Politics Balla
 
Oxford Dictionaries to add 1,000 new words
London, Dec 4 (IANS) 'Mamil' (middle-aged man in Lycra), 'silvertail' (a person who is socially prominent or who displays social aspirations) and 'crony capitalism' are among the 1,000 new words to be added to...
Read more on Celebrity Balla
 
Oceans play key role in global 'warming hiatus'
London, Dec 4 (IANS) Increased heat uptake across three oceans - North Atlantic, the Southern Ocean and Equatorial Pacific Ocean - is the likely cause of the 'warming hiatus' -- the current decade-long slowdown in...
Read more on Politics Balla
 
Novel imaging to identify if TB drugs are working
Washington, Dec 4 (IANS) Tuberculosis patients who are not cured of the infection can develop multi-drug resistant TB and have to take as many as six drugs for two years. Now, researchers at University of Pittsburgh...
Read more on Business Balla
 
PM makes first appointment to High Court of Australia
Canberra, Dec 4 (IANS) Prime Minister Tony Abbott's government Thursday appointed former Victorian Supreme Court judge Geoffrey Nettle as the next Justice of the High Court of Australia. Attorney General George...
Read more on Politics Balla
 
18 suspected militants killed in Pakistan airstrikes
Islamabad, Dec 4 (IANS) At least 18 suspected militants were killed Thursday in airstrikes conducted by Pakistan Air Force fighter jets in North Waziristan. According to officials, the airstrikes were conducted in...
Read more on Politics Balla