Samsung, LG enjoy robust Q1 performances
SEOUL-- Samsung Electronics Co. and LG Electronics Inc., two leading South Korean tech giants, are estimated to both have posted healthy first-quarter earnings, casting a brighter outlook for 2017, industry watchers said Saturday.
In an earnings guidance report, Samsung said its first-quarter operating profit for this year advanced 48.2 percent on-year to reach 9.9 trillion won (US$8.76 billion), apparently helped by the robust performance of its chip business.
It marks the second-highest quarterly operating profit ever posted by Samsung. The current record was set in the third quarter of 2013, when Samsung's operating profit hit 10.1 trillion won.
Samsung's sales over the cited period edged up 0.44 percent to 50 trillion won, the data also showed.
LG Electronics also said its first-quarter operating profit is estimated at 921.5 billion won. The latest figure marks an 82.4 percent jump from 505.1 billion won posted in the January-March period of 2016.
Both companies did not provide a breakdown of each business division. They will deliver a detailed and finalized report later this month.
Industry watchers said Samsung enjoyed sound performance on the back of the boom of the global chip industry, with some estimating the business posted an operating profit of 6 trillion won in the first quarter. The South Korean tech giant posted an all-time high operating profit of 4.9 trillion won in the chip segment in the October-December period of 2016.
LG Electronics also reported higher-than-expected operating profit on the back of improved sales of premium home electronics, industry watchers added.
Both Samsung and LG, meanwhile, are anticipated to post healthier performances for the second quarter, helped by the full-fledged sales of their respective flagship smartphones.
Samsung plans to begin sales of the Galaxy S8 and the Galaxy S8 Plus later this month, which are expected to play a crucial role in revitalizing the company's sales of premium smartphones. The suspension of the Galaxy Note 7 phablet last year dealt a blow to its market presence as well as its reputation.
LG, which released the G6 smartphone last month, will also kick off full-fledged overseas sales this month, speeding up its sales and pushing to win over customers.
Source: Yonhap News Agency