Samsung reports strong second quarter

Samsung Electronics has reported strong growth in sales and profits for the second quarter of its current financial year and...

Samsung Electronics has reported strong growth in sales and profits for the second quarter of its current financial year and increased planned capital expenditure.

It said sales in the second quarter totalled $12.8bn (£6.8bn), up 52% on the same period a year ago, while operating profit was 222%, and net income up 177%.

Of the company's five main divisions, its semiconductor business reported the highest revenue and operating income.

The product sector achieved its overall growth with memory revenue rising 13%, although average selling prices were mixed across Samsung's product range.

DRam prices climbed and NanD flash prices fell during the quarter, said Woosik Chu, senior vice-president of Samsung's investor relations team.

The company's LCD business saw sales climb 4%. Prices for notebook computer and television panels fell while prices for 17in monitor panels, which Samsung is pushing as a standard size for computer monitors, increased.

In its telecommunications business sales rose higher on growing demand for the company's cell phones, especially in the US. Total shipments of during the quarter were 22.7 million units. As a result, market share increased to between 14% and 15% from around 13% in the first quarter.

"In the North American market we are planning to launch new lines of phones for Verizon, Cingular and AT&T," said Hyun Suk Chung, vice-president of Samsung's telecomms network business.

"In Europe we are introducing new models such as the E800 slider and other camera phones. In line with penetration increasing in western Europe, we are expanding our penetration in eastern Europe and the CIS (Commonwealth of Independent States)," said Chung.

The company also raised its estimation for the worldwide market for cellular handsets this year to 600 million units.

Martyn Williams writes for IDG News Service


Read more on Business applications