Samsung posts second-quarter profit of $5.1bn

Samsung reported second-quarter profit that beat analysts' estimates, fuelled by stronger sales of Galaxy S7 smartphones and aggressive cost cuts.

Net income, excluding minority interests, was 5.83 trillion won (€4.66 billion) in the period, the South Korean company said in a filing on Thursday.

Share buyback

The company also announced a 1.79 trillion-won share buyback, the final stage of a plan announced last year.

Samsung has benefited from sluggish sales of iPhones as US wireless carriers promoted the Galaxy S7 for high-end consumers, helping to reduce marketing expenses. That could change in the second half as the company faces new models from Apple.

Lower prices for semiconductors and displays have also helped sales of the company’s other consumer electronics, even amid sluggish economic growth across the globe.

“Samsung did well in the first half, but it’s the matter of how well it could defend itself from the overall downside risks in the second half.”

Revenue was 50.9 trillion won in the quarter. Operating profit at the mobile unit rose to 4.32 trillion won from 2.76 trillion won. Operating income at the chip unit was 2.64 trillion won, compared with 3.40 trillion won a year earlier. – (Bloomberg)