Samsung Electronics forecasts 23 percent jump in Q2 operating profit

Agence France-Presse

Posted at Jul 07 2020 09:18 AM

People wear masks in front a Samsung store at a shopping area in Shanghai, China, Feb. 21, 2020. Aly Song, Reuters/File Photo

SEOUL -- Samsung Electronics forecast a 23-percent rise in second-quarter operating profit Tuesday thanks to strong demand for memory chips and displays, despite the coronavirus pandemic weighing on the global economy.

The world's biggest smartphone and memory chip maker said in an earnings estimate that it expected operating profit to be 8.1 trillion won ($6.8 billion) in the April-June period, up from 6.6 trillion won in 2019.

The estimate beat analyst forecasts of a single-digit decline in profit year-on-year.

Samsung attributed the rise to a one-off profit generated from its display division, without offering details.

It predicted sales during the second quarter would be down by 7.3 percent from a year earlier.

Data centers have moved to stockpile DRAM chips to meet surging demand for online activities in the face of coronavirus restrictions imposed especially in Europe and the United States.

Mobile sales also seemed to have improved with the lifting of some restrictions in other parts of the world.

Samsung shares were up 0.4 percent in early trade on Tuesday.