Business & Economy

Samsung posts 7.33 pct net profit growth in Q2

Seoul, Jul 30 (EFE).- South Korean giant Samsung Electronics achieved a net profit of 5.55 trillion won ($4.67 billion) in the second quarter, a 7.33 percent year-on-year increase, driven by its semiconductor division.

The company’s gross operating profit between April and June was 7.7 trillion won, 8.21 percent more than the same quarter of 2019, while its operating profit stood at 8.15 trillion won, an increase of 23.48 percent year-on-year, Samsung Electronics said in a statement on Thursday.

“Even as the spread of COVID-19 caused closures and slowdowns at stores and production sites around the world, the Company responded to challenges through its extensive global supply chain, while minimizing the impact of the pandemic by strengthening online sales channels and optimizing costs,” the statement said.

However, Samsung’s consolidated revenue fell 5.62 percent with respect to a year ago to 52.97 trillion won.

The data is in line with the forecast that Samsung Electronics released earlier this month.

The multinational electronics company headquartered in Suwon, south of Seoul, said that “a partial recovery in global demand since May also helped offset some COVID-19 effects, resulting in higher earnings than initially expected.”

“Revenue in the quarter fell 4 percent from the previous quarter and 6 percent from a year earlier due to reduced sales of smartphones and other devices,” it added.

The turnover of the company’s mobile division declined by 19.7 percent year-on-year although cost reduction boosted operating profits by 25 percent.

“The Memory Business saw robust demand for cloud applications related to remote working and online education as the impact from COVID-19 continued, while demand for mobile was relatively weak,” according to Samsung Electronics.

The chip unit alone posted an operating profit of 5.43 trillion won between April and June, almost double that of the same period last year.

Meanwhile, Samsung Electronics’ display panel business returned to the black with an operating profit of 300 billion, apparently due to the cancellation of orders by Apple, for which analysts believe the US company paid a compensation of some $900 billion to the South Korean firm. EFE

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