Samsung sees strong Q2 earnings, shares jump
By Rhee So-eui and Marie-France Han
SEOUL (Reuters) - South Korea's Samsung Electronics, the world's top maker of memory chips and flat screen TVs, forecast second-quarter earnings well above market estimates, driving its shares up more than 4 percent on Monday.
Technology companies around the world have seen their earnings and valuations hit by the global downturn, which has prompted consumers to cut back spending on electronics goods.
Analysts said the guidance reflected Samsung's strong market position and it was too soon to say the industry was on the mend.
"It looks like all key businesses -- semiconductors, LCD and mobile phones -- outperformed expectations," said Lee Min-hee, an analyst at Dongbu Securities.
"We've been expecting Samsung's earnings to show a V-shape recovery in the first half, and it looks like it's a much steeper recovery."
Samsung expects to post a consolidated operating profit for April-June of 2.2 trillion-2.6 trillion won ($1.74 billion-$2.05 billion) when it reports second-quarter earnings on July 24, it said in a filing to the Korea Exchange.
Samsung said it was the first time it had provided earnings guidance and was aimed at reducing confusion ahead of results, but it did not include a breakdown of divisional performance or other details.
"The guidance is very likely to translate into a parent-basis operating profit well above street forecasts of about 1 trillion won," said Dongbu's Lee. Continued...
Pledge to support economies
G20 financial leaders pledged to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured. Full Article | Related Story
Galleon case
U.S. insider trading probe widens
Fourteen people were charged with fraud and conspiracy in a dramatic widening of an insider trading scandal. Full Article





India
US
UK










