SEOUL – Samsung Electronics Co., riding hot demand for its components, is forecasting its second-quarter operating profits will easily be the company's highest ever, a sign the South Korean technology giant's business is thriving even after a year of political and operational unrest.
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Samsung on Friday said it expects second-quarter operating profit of about 14 trillion won ($12.1 billion), a 72% increase from 8.14 trillion won in the same period a year earlier. Samsung estimates revenue will be 60 trillion won from April to June, a sharp rise from the prior year's second quarter of 50.94 trillion won.
Samsung's previous all-time operating profit record came in the third quarter of 2013 when it posted 10.2 trillion won. Final earnings results will be released later this month.
Samsung, the world's largest smartphone maker, now derives the lion's share of its profits from semiconductors and display panels, a shift from just several years ago when hand-held devices raked in most of the company's earnings.
Samsung has succeeded largely through aggressive investments around the globe. It pumped tens of billions of dollars into making the core parts that its technology rivals need to make their own devices, helping Samsung emerge as a front-runner in semiconductors and display panels. On Tuesday, Samsung said it would invest even more money into a just-completed multibillion-dollar semiconductor facility in South Korea.
Samsung's financial performance comes after a rocky year for the South Korean conglomerate. Last year's embarrassing recall of Galaxy Note 7 devices cost it at least $5 billion and eroded trust with consumers.
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Meanwhile, Samsung's de facto leader, Lee Jae-yong, is standing trial on his alleged role in a bribery scandal roiling South Korea. Mr. Lee has denied wrongdoing.
Samsung on Friday didn't provide a breakdown of mobile-phone sales, but the firm's latest flagship device, the Galaxy S8, received positive reviews after its April 21 debut. Some analysts believe robust sales of the handset also helped to fuel earnings.
Write to Timothy W. Martin at email@example.com and Eun-Young Jeong at Eun-Young.Jeong@wsj.com
(END) Dow Jones Newswires
July 06, 2017 20:17 ET (00:17 GMT)