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Biz News Korea(Eng)
Samsung Elec’s Q1 OP near $9 bn on strong chip sales
- Collected
- 2017.04.08
- Distributed
- 2017.04.10
- Source
- Go Direct
The electronics giant’s earning guidance for the quarter ended in March has beat market consensus by more than 500 billion won. Its shares were down 0.57 percent to end at 2,080,000 won in Seoul trading on Friday, upon overnight news that it had lost a patent battle with its Chinese rival Huawei Technologies.
Its first-quarter operating profit neared the historic high of 10.2 trillion won in the third quarter of 2013 by adding 7.4 percent to the strong fourth quarter on a spike in both international chip prices and demand.
Sales hit 50 trillion won, up 0.44 percent on year but down 6.24 percent on quarter, suggesting the world’s largest chipmaker that is also a leader in smartphones and home appliances has done well in high-end products.
The operating margin that measures the income against sales rose 6.5 percentage points on year to 19.8 percent in the first quarter.
The company has not detailed out income by segment in its guidance.
The industry believes the memory chip market since the latter half of last year has entered a new super cycle, a period of an upturn as the result of replacements with high-performance memory in PCs and strong demand for mobile devices coupled with blossoming in aggressive investments from the makers.
Experts estimate Samsung to have earned more than 6 trillion won from chip business in the first quarter, beating 4.95 trillion won profit in the fourth quarter.
By Song Sung-hoon
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]