Samsung Q2 profit sags as flat screen posts losses

Reuters News
|
Posted: Jul 28, 2011 8:03 PM

SEOUL (Reuters) - Samsung Electronics Co, the world's top memory chipmaker, reported a 25 percent fall in quarterly profit as its flat screen business posted a second consecutive quarterly loss, overshadowing strong profit growth from handset sales.

The South Korean firm, also the world's No.2 maker of mobile phones, reported a 3.75 trillion Korean won ($3.6 billion) operating profit for April-June, versus the consensus forecast for a 3.7 trillion won profit according to Thomson Reuters I/B/E/S.

The result was broadly in line with Samsung's estimate earlier this month for an operating profit of between 3.5 trillion won and 3.9 trillion won.

Its operating profit compares with 2.95 trillion won posted in the preceding quarter and a record 5.01 trillion won a year earlier.

Samsung trails Nokia in mobile phones, competes with Sony Corp and LG Electronics Inc in TVs, and Toshiba and Hynix in semiconductors.

Shares in Samsung, the world's biggest technology firm by revenue, have dropped 9 percent over the past three months, lagging a 3 percent fall in the KOSPI.

Samsung has a market capitalization of $131 billion, bigger than the combined value of Sony Corp, Nokia, Toshiba Corp, Panasonic Corp and LG Display.

(Reporting by Miyoung Kim; Editing by Vinu Pilakkott)