Samsung Elec. Posts Record Q1 Profit on Chip Rebound (Update4)
By Ian King
quote.bloomberg.com
Seoul, April 19 (Bloomberg) -- Samsung Electronics Co., the world's largest maker of computer-memory chips, posted a record first-quarter profit, buoyed by higher mobile-phone sales and a price surge of more than half for its main product.
Net income rose to 1.9 trillion won ($1.4 billion) from the 1.2 trillion won in the year-earlier period, exceeding the record 1.6 trillion won posted in the first quarter of 2000. The results were better than the average 1.47 trillion won profit forecast from five overseas brokerages surveyed by Bloomberg News.
Samsung's earnings are rebounding faster than those of rivals such as Hynix Semiconductor Inc. because the company is able to make chips at lower cost. The chipmaker, which leapt into fourth place last year among the world's mobile-phone makers, is also being helped by its telecommunications business.
``The figures are very good and better than expected, particularly their telecom business,'' said Kim Gee Soo, who has a ``buy'' recommendation on the stock at Nomura Securities Co. in Seoul.
Samsung's shares rose as much as 1.7 percent after the earnings announcement to 413,500 won, bringing gains the past five days to 12 percent. They were most recently at 403,000 won, down 0.9 percent. |
