Samsung Electronics Posts Surprise 2Q Operating Profit of 8.1 Trillion Won... 'The Power of Semiconductors' (Update)

[Asia Economy Reporter Changhwan Lee] Samsung Electronics announced its preliminary results for the second quarter on the 7th, with sales of 52 trillion won and operating profit of 8.1 trillion won. Compared to the same period last year, sales decreased by 7.4%, but operating profit increased by 22.7%.

This is a surprise performance that greatly exceeded the second quarter operating profit consensus of 6.4 trillion won estimated by the financial investment industry.

The reason Samsung Electronics' second quarter results greatly exceeded market expectations is presumed to be due to the semiconductor and smartphone businesses showing a faster recovery than expected.

The growth of the non-face-to-face (untact) market due to the spread of the novel coronavirus infection (COVID-19) led to rising semiconductor prices, and the resumption of economic activities in major countries since June improved smartphone sales.

In particular, the semiconductor division is estimated by the industry to have recorded operating profit of around 5.4 trillion won in the second quarter. This is the highest level in six quarters since recording about 7.8 trillion won in the fourth quarter of 2018.