Samsung estimates Q2 profit down 26 percent

Reuters News
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Posted: Jul 06, 2011 7:44 PM
Samsung estimates Q2 profit down 26 percent

SEOUL (Reuters) - Samsung Electronics, the world's top maker of memory chips and televisions, estimated its April-June operating profit would fall 26 percent year on year, as its LCD display business is widely expected to report another loss.

Samsung estimated its quarterly operating profit at 3.7 trillion won ($3.5 billion), compared with a consensus forecast of 3.9 trillion won by analysts surveyed by Thomson Reuters I/B/E/S. That would be down 26 percent from a record 5.01 trillion won a year ago and up 25 percent from the preceding quarter.

The company's operating profit was expected to show a downside surprise of 6 percent to 3.6 trillion won, according to Thomson Reuters SmartEstimates, which places more weight on recent forecasts by top-rated analysts.

Samsung, the first major technology company to kick off quarterly results, will provide detailed results later this month.

Shares in Samsung, Asia's most valuable technology firm with a market value of around $134 billion, have fallen around 5 percent over the past three months, versus a 1 percent gain in the wider market.

(Reporting by Miyoung Kim; Editing by Anshuman Daga and Jonathan Hopfner)