• The Financial District

SAMSUNG SAYS PROFITS UP 23% DUE TO HIGH CHIP DEMAND

Samsung, the world's largest smartphone maker, predicts its profit jumped more than 20% last quarter, suggesting that the company has managed to withstand the fallout from the CPVID-19 pandemic, Shrisse Pham reported for CNN Business early on July 7, 2020.


The South Korean conglomerate said on Tuesday that it expects to make an operating profit of roughly 8.1 trillion won ($6.8 billion) for the three months that ended in June. That's up nearly 23% from the same period a year ago. The estimates also beat roughly the 2% profit slump that analysts polled by data provider Refinitiv had predicted.

Samsung said it expects sales will fall about 7% to 52 trillion won ($43.6 billion). Analysts polled by Refinitiv had predicted 51.4 trillion in sales ($43 billion). Its shares opened up 1.5% in Seoul, before paring back those gains. The stock was last trading down about 1.5%. It added estimates "include a one-time gain related to the display business." It did not otherwise elaborate on earnings, but will report full results for the second quarter at the end of this month.

The company — which supplies key parts like display panels and chips for companies such as Apple and Huawei — is among the first of the big tech companies to report earnings for the quarter, and its full report will be viewed as a bellwether for how tech giants are withstanding the pandemic.

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