Samsung Electronics today said second-quarter net profit fell 18 per cent from a year earlier, as weakness at its struggling display unit outweighed strength at its cellphone operations.
Samsung said it earned 3.51 trillion won, or $3.33 billion, in the April-June period. It earned 4.28 trillion won a year ago. Revenue was 39.4 trillion won, up 4% from last year.
The decline in Samsung’s second-quarter net profit from the same period a year earlier indicates that even the world’s largest maker of flat-screen displays isn’t immune to the cyclical downturn of the global flat-panel industry, which has been exacerbated by sluggish demand for TVs from developed markets amid a murky global economic outlook.
Memory chip prices have also weakened compared to last year because of a global over-supply – Samsung’s mainstay business saw a 40 percent drop in operating profit after a stellar 2010.
In a statement, Samsung executives said they expected few changes in the near-term outlook, with demand likely to be constrained for most electronics products while smartphone growth continues to be exceptional.