The Korea Herald


Samsung Electronics forecast to post 30 tln-won operating profit in 2016

By 이우영

Published : Aug. 14, 2016 - 14:14

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South Korea's brokerages on Sunday forecast Samsung Electronics Co. will post an operating profit of more than 30 trillion won (US$27 billion) for this year on strong demand for new smartphones.

For the world's largest smartphone marker by shipments, it will be the second time profits will top the 30 trillion-won mark. In 2013, the corresponding number was 36.785 trillion won, according to market research firm FnGuide.

The market consensus for the company's operating income this year continued to rise from 23.26 trillion won at the end of March to 27.88 trillion won at end-June and to 30.58 trillion won as of Aug. 11. The upward revision was sparked by Samsung's earnings surprise in the April-June quarter, FnGuide said.

In the second quarter, Samsung Electronics beat market expectations to post 8.144 trillion won in operating profit, jumping 18.06 percent from 6.898 trillion won a year earlier, a regulatory filing showed.

Strong sales of the Galaxy S7 smartphone series were the major contributor to the improved operating profit in the June quarter.

In the second half, the newly released Galaxy Note 7 smartphone will help buoy the company's bottom line, brokerages said.

Meanwhile, they predicted Samsung Electronics will post 206.37 trillion won in sales for this year, up 2.9 percent from 200.65 trillion won a year earlier.

Shares in Samsung Electronics have jumped 22.6 percent this year through Friday, outperforming the broader KOSPI's 4.6 percent gain.  (Yonhap)