Samsung's Q2 forecast highlights tech industry strength

The company forecast record operating profit for the second quarter

Samsung Electronics, one of the world's largest electronics makers, on Wednesday forecast record operating profit for the second quarter of 2010 on strong sales.

The company is considered a technology industry bellwether because it is the world's largest producer of several products, including flat-screen TVs, DRAM, NAND flash memory chips and LCD screens, as well as the second-biggest mobile phone vendor. Its strong guidance for the second quarter, which ended June 30, suggest the technology industry continues to rebound after the global downturn last year.

Samsung said its operating profit will reach approximately 5 trillion Korean won (US$4 billion), while sales will hit 37 trillion won. The 5 trillion won figure would beat Samsung's previous record high of 4.4 trillion won in the first quarter. The company will likely report the final results by the end of this month.

The company's forecasts have proven accurate in the past. Samsung nearly matched the guidance it provided in the first quarter, when it reported final results in April. The company forecast first quarter operating profit would reach 4.3 trillion won and its final results put the figure at 4.4 trillion won. Samsung also forecast 34 trillion won in sales for the first quarter, and the final result was 34.6 trillion won.

The strong forecast is one of the latest signs the technology industry continues to grow, though some analysts fear growth could slow in the second half of this year due to worries over debt in Europe and a possible slowdown in China's growth. Those doubts prompted a 1.3 percent decline in Samsung's stock to 62,700 won on the Korea Exchange on Wednesday, while the Kospi Composite Index of South Korean stocks slipped 0.6 percent.

Samsung has been bullish this year on prospects in the tech industry.

In May, the company announced its biggest spending plan ever for a single year, 26 trillion won, including 11 trillion won for new chip production lines and 8 trillion won for research and development. The company also said it planned to hire 10,000 new workers this year.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesfinancial resultsSamsung Electronics

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?