Samsung Rides Components Business to Highest Quarterly Profit in Three Years

By Timothy W. Martin Features Dow Jones Newswires

Samsung Electronics Co.'s flourishing components business helped the South Korean technology giant notch up its highest quarterly profit in more than three years.

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But investors' focus remains fixed on how consumers are receiving Samsung's newest flagship smartphone following last year's costly smartphone recall.

Samsung, the world's largest smartphone maker by revenue, said that net profit rose sharply to 7.68 trillion South Korean won ($6.8 billion) in the first three months of 2017, a 46% increase from 5.25 trillion won for the same period a year earlier.

Revenue edged up slightly to 50.55 trillion won for the first quarter. Operating profits rose to 9.90 trillion won, up 48% from 6.68 trillion won a year earlier.

Unrelenting demand for Samsung's semiconductors and flexible display panels -- from smartphone rivals like Apple Inc. -- have lifted the company's bottom line, offering the South Korean conglomerate a cushion against the brand damage inflicted during last year's Galaxy Note 7 fiasco, which was caused by overheating batteries.

Thursday's robust earnings come as Samsung weathers a political scandal back home that has put the company's de facto leader Lee Jae-yong behind bars as he awaits a court ruling for alleged bribery and other charges.

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Write to Timothy W. Martin at timothy.martin@wsj.com

Eun-young Jeong contributed to this article.

(END) Dow Jones Newswires

April 26, 2017 20:14 ET (00:14 GMT)