Samsung Q2 Profit Climbs

Samsung Electronics Co Ltd (SMSN.L,SSNNF.OB,SSNLF.OB) reported a profit for the second-quarter that climbed 72.18 percent from the previous year, reflecting higher-than-expected chip prices and continued consumer demand for electronics during the pandemic. Quarterly sales grew 20.21 percent from the prior year.

The company expects favorable market conditions for the components business in second half.

The Memory Business is expected to see continued demand growth for server and mobile products and the company will accelerate migration to 15-nm DRAM and 6th generation V-NAND as well as expand the application of extreme ultraviolet (EUV) lithography process in DRAM production.

Looking ahead to the second half, mobile market is forecast to recover to the pre-COVID level on an annual basis as 5G adoption and contactless trend continue to thrive. However, uncertainties over component supply and COVID-19 will continue to persist.

The Mobile Communications Business plans to achieve solid revenue and profit by boosting the competitiveness of the product lineup with the launch of new foldable models and the expansion of mass market 5G phones.

Looking ahead to the second half, COVID-19 related uncertainties continue to pose a risk for both TV and Digital Appliances businesses. However, the Company looks forward to improved demand for TVs compared to the first half of the year, due to stronger seasonality.

The South Korean electronics giant reported that its net income attributable to the shareholders of the parent company for the second-quarter climbed 72.18 percent to 9.45 trillion Korean won from 5.49 trillion won in the same quarter last year.

Operating profit for the quarter grew 54.26 percent to 12.57 trillion won from the previous year.

Consolidated sales for the second-quarter grew 20.21 percent year-over-year to 63.67 trillion won.

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