Jul 24, 2009, 9:56 GMT
Seoul - The world's largest computer chipmaker, South Korea's Samsung Electronics Co, on Friday reported a 5.2-per-cent rise in net profit in the second quarter.
Net profit rose from 2.14 trillion won (1.8 billion dollars) in the April-to-June quarter of 2008 to 2.25 trillion won in the same period this year, the company said.
The increase surpassed market expectations. Profit was up 65.6 per cent from the previous quarter.
However, operating profit was down to 1.06 trillion won from 1.89 trillion won.
Samsung's earnings were boosted by growing demand for flat-screen televisions and mobile phones. The company is the world's leading producer of LCD, or liquid crystal display, televisions and the second-largest mobile phone maker after Finland's Nokia.
Sales were up 15.9 per cent to 21 trillion won year-on-year.
Samsung expected earnings to improve further this year after a recovery in the memory chip business but remained cautious that profits could be affected by intensifying competition and a stronger won.
'Despite a strong won and an increase in marketing costs, we will be able to see improving earnings in the third quarter and solidify our market dominance,' Samsung said.
Samsung's semiconductor unit returned to profit after dipping into the red in the first quarter, a result of cost-cutting measures and rising chip prices, Samsung said.
Its LCD section reported a 150-billion-won operating profit, following operating losses of 310 billion won the previous quarter, while operating profits in its telecommunications unit narrowed slightly to 1 trillion won.
Meanwhile, Hynix Semiconductor Inc, South Korea's second-largest chipmaker, reported its seventh-consecutive quarterly loss.
The net loss narrowed to 58 billion won from 711 billion won in the first quarter.
Sales declined by 10 per cent year-on-year to 1.68 trillion won, but picked up by 28 per cent compared with the first three months of the year.
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