Samsung Electronics’ profit increase fueled by strong semiconductor business

(MENAFN) On Wednesday, Samsung Electronics Co. reported a dramatic increase in its operating profit for the second quarter, with a rise of over 15 times compared to the same period last year, driven largely by strong performance in its semiconductor sector. According to the company's regulatory filing, its operating profit for the April-June period soared to 10.44 trillion won (approximately USD7.54 billion), up from 668.5 billion won (about USD490 million) a year ago, marking an extraordinary growth of 1,458 percent. This is the first time in seven quarters that Samsung has achieved an operating profit exceeding 10 trillion won (about USD7.3 billion), with the last instance occurring in the third quarter of 2022.

Sales for the company also experienced a notable increase, rising by 23.4 percent year-on-year to 74.06 trillion won (around USD53.45 billion). Net profit surged 471 percent to 9.84 trillion won (about USD7.1 billion). These earnings exceeded market expectations, with analysts having forecasted an average operating profit of 10.29 trillion won, according to a survey by Yonhap Infomax.

In terms of investment, Samsung Electronics committed 8.05 trillion won to research and development during the second quarter and allocated 12.1 trillion won (about USD8.8 billion) towards facilities investment, including 9.9 trillion won specifically for its semiconductor business. The semiconductor division alone reported sales of 28.6 trillion won and an operating profit of 6.45 trillion won (approximately USD4.7 billion), underscoring its significant contribution to the company’s overall financial success. 

MENAFN31072024000045015682ID1108502484