July 08, 2020 11:43
Samsung Electronics announced better-than-expected earnings on Tuesday.
The company's preliminary second-quarter operating profit increased 22.7 percent on-year to W8.1 trillion (US$1=W1,197). Sales, however, fell 7.4 percent on-year to W52 trillion. Brokerages had forecast sales at W51.1 trillion and operating profit at W6.5 trillion.
The operating margin reached 15.6 percent, compared to 11.8 percent a year ago, the highest since the fourth quarter of 2018 (18.2 percent). In other words, Samsung sold fewer products due to the coronavirus pandemic but made more money from them.
Semiconductor sales once again spearheaded earnings growth. The semiconductor division achieved an estimated operating profit of W5.2 trillion, up 53 percent on-year and 30 percent compared to the first quarter. That meant the semiconductor division accounted for a whopping 64 percent of Samsung's total operating profit.
Sales of smartphones and home appliances plunged sharply until April only to recover slowly in May. Sales were also helped by the reopening of the home appliance chain Best Buy in the U.S. and Europe in mid-May.
Many customers around the world spent emergency relief from governments on home appliances.
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