|
Samsung profits built on chips
A record April-June quarter nets £2.3 billion profit for Korean giant
Samsung Electronics has posted a record quarterly net profit to June 2010 of £4.28 trillion Won (£2.3 billion), up a massive 83% on the same period last year. But the biggest manufacturer of flat panel TVs in the world said that strong sales of components such as memory chips, and a good performance in smartphone sales, were largely responsible, and the future outlook for consumer electronics means these high profits are unlikely to be sustained.
Samsung said in a statement that, in a continuing “difficult climate” for consumer products, profitability could decline in the second half. “With intensified competition throughout the digital media and mobile industries going forward,” said head of investor relations Robert Yi, “it may become a challenge to maintain current profitability levels.”
Analysis of results by division bears out the warnings. While year-on-year operating profits in the semiconductor division were up 765%, the telecommunications division suffered a 36% fall, and year-on-year operating profits in the digital media division, which includes TV and household appliances, were down by a very significant 69%.
Samsung’s quarterly results follow news earlier this week from the other Korean giant, LG, the world’s second largest TV manufacturer, that quarterly profits had slumped by 33% (see report on this website 28 July).
|
