Samsung Electronics earns 1 trillion won every week in Q1

Samsung Electronics earns 1 trillion won every week in Q1. July. 08, 2017 07:10. by Sung-Gyu Kim sunggyu@donga.com.

Samsung Electronics posted 14 trillion won (12.13 billion U.S. dollars) in operating profit thanks to the semiconductor "super cycle." The earnings represent the best ever quarterly performance for the electronics giant, and are believed to be all-time high in the manufacturing sector in the world, surpassing those of Apple and Intel.

 

Samsung said on Friday its preliminary tally shows an operating profit (consolidated basis) of 14 trillion won (12.13 billion dollars) on 60 trillion won (52 billion dollars) in sales in the second quarter. The company effectively earned about 1 trillion won (870 million dollars) per week. Its sales and operating profit both well exceeded its previous records of 59.08 trillion won (51.1 billion dollars) and 10.160 trillion won (8.75 billion dollars), respectively, from the third quarter of 2013. Sales rose by 17.8 percent year-on-year, and operating profit jumped a whopping 72.0 percent The operating profit ratio came to 23.3 percent, the best showing ever, as the quality of its business has significantly improved.

 

Notably, the latest earnings surprise stems from a booming semiconductor market. The securities market predicts Apple, the world’s largest company in market capitalization, is expected to post an operating profit of 10.55 billion dollars in the second quarter. After surpassing Intel’s in operating profit in the first quarter, Samsung’s semiconductor business is now now exceeding the latter’s in sales as well, as the Korea-based company is set to become the undisputed No. 1 chipmaker in the world.