News Worms
News Worms

LG Elec estimates Q1 profit surged, likely best in almost 8 years

Samsung Electronics said Friday, April 7, 2017 its first-quarter profit jumped 48 percent likely due to smartphone component sales.

Samsung's official earnings report will be announced at the end of this month.

Samsung Electronics logged a near-record operating profit in the January-March quarter despite the absence of Vice Chairman Lee Jae-yong, who has been in custody for bribery charges. The political scandal prompted millions of South Koreans to regularly protest in the streets and culminated in the removal of the country's president in March.

The strong guidance failed to shore up investor's confidence in the firm, however, as shares in Samsung fell nearly 1 percent in early trading.

SEOUL, South Korea (AP) - The scion of South Korea's Samsung business empire, Lee Jae-yong, appeared in court Friday to face trial for bribery and other charges. The S8 was its first major smartphone launch since the fire-prone Galaxy Note 7 fiasco.

Analysts are expecting Samsung's second quarter results to be even better due to the S8 and the new artificial intelligence technology that comes with it, known as Bixby.

One of the favours Lee allegedly sought from president Park was state approval for a controversial merger of two Samsung units in 2015, seen as a key step to ensure a smooth transfer of power to him.

Although the company did not detail income by segment in its guidance, industry experts believe the stellar first-quarter performance was largely driven by a boon in memory chip business. Previously, the smartphone business was the company's main contributor.

The mobile phone unit is estimated to have generated almost 2 trillion won in operating profit for the first quarter, falling from 3.9 trillion won year-ago period but relatively decent when considering the discontinuation of Galaxy Note 7. Samsung succeeded in the commercial production of DRAM chips on 10-nanometer class technology for the first time in the industry and began mass-producing 8-gigabit double-data-rate 4 (DDR4) DRAM chips on 10-nanometer (nm) process a year ago. The results also underscore how the electronics conglomerate is recovering from last year's Note 7 crisis, when some smartphones burst into flames and forced Samsung to pull it from shelves.

The operating profit and sales both mark the second-highest quarterly figures ever posted by LG.


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