Samsung forecasts 26pc fall in Q2 operating profit


8 Jul 2011

Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Pin on PinterestShare on RedditEmail this to someone

Share on FacebookTweet about this on TwitterShare on LinkedInShare on Google+Pin on PinterestShare on RedditEmail this to someone

Samsung Electronics foresees a 26pc drop in its second-quarter operating profit of 3.7trn won (US$3.48bn), which is below the record 5.01trn won (US$4.7bn) a year earlier.

The world’s biggest maker of flat panels, memory chips and flat-screen televisions, however, forecast Q2 revenue at 39trn won (US$36.6bn) in its earnings guidance before the release of official results. That marks a 2.9pc increase from 37.89trn (US$35.8bn) in April-June 2010.

Samsung did not provide an estimate for net profit or other details.

Decreasing demand for TVs and personal computers, particularly in the US and Europe, probably had an impact on the company’s liquid crystal display business, analysts said.

However, the analysts expect earnings to improve in forthcoming quarters as a result of strong sales of the new Galaxy S II smartphone. Some 3m million units of the device had been sold globally by the end of June. Samsung released the smartphone in April.

Photo by Fiona Thomson/flickr