Samsung profits boosted by semiconductors, LCDs

Korean chaebol Samsung Electronics turned in revenues of 37.89 trillion won for its second quarter, a rise of 17 percent compared to the same quarter year on year. It turned a net profit of 4.28 trillion won.

Samsung said sales in its component business – including its semiconductor division and its LCD flat screen division – both contributed to the rise in profits.

But Robert Yi, VP of Samsung’s investor division, said that there was increased competition in the digital media and mobile divisions. “It may become a challenge to maintain current profitability levels,” he said.

He predicted that seasonal demand for components will boost Samsung’s performance in the third quarter.

The semiconductor division turned in a 30.8 percent profit margin and operating profit was up a staggering 765 percent compared to the same period last year.  Samsung said there was strong demand in the DRAM business, with a 20 percent plus increase in PC shipments and a 30 percent rise in gigabytes per system year on year. Demand for NAND memory remained “steady”

Samsung said that the third quarter will see more DRAM and NAND memory sales.

The LCD business showed a margin of 11.3 percent for the quarter, with sales increasing by between 15 to 20 percent year on year. Average selling prices for TV panels rose by three percent.

Samsung claims it holds the lead position on 3D TV sales – it shipped half a million units, while for flat panel TVs Samsung shipped over nine million units, an increase of 43 percent year on year due to strong groth in developing markets.