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Samsung Rings Up Record Profit In Q2

Seoul, South Korea — Samsung Electronics reported a record second-quarter net profit, up 50 percent year over year, attributed to strong smartphone sales.

The company reported 9.53 trillion won ($8.5 billion) in operating profit on revenues of 57.46 trillion won ($51 billion) for the quarter ended June 30. Sales were up 21 percent year over year.

Samsung said net profit for the quarter hit a record 7.77 trillion won ($7 billion), up from 5.19 trillion won in last year’s Q2, topping the previous record of 7.15 trillion won in the fiscal first quarter.

Samsung’s mobile business continued to be its biggest profit generator, accounting for 66 percent of the operating profit in the quarter, but margins in the sector fell to 17.7 percent, down from 19.8 percent in the first quarter. Samsung cited increased spending on distribution and marketing for new product launches, and increased R&D spending for the weaker margins.

Samsung warned that the strong growth streak for the smartphone market is expected to continue in the third quarter but likely at a slower pace.

The company saw increased sales over Q1 in each of its three divisions. The CE division, which includes TVs and appliances, saw sales increase 14 percent, generating a solid 83-percent growth in operating profit. Mobile division sales were up 8 percent and the company’s semiconductor and chip business rang up an 8 percent sales gain.