LG sees best first quarter for almost eight years

Share

Its stock is up 16 percent this year through Thursday. It is scheduled to give more details including quarterly net profit later in the month.

The first-quarter operating profit was above the market's earlier estimate of 9.43 trillion won, compiled by Yonhap Infomax, the financial news arm of Yonhap news agency. Expectations for the second-quarter profit are running high on the release of its new flagship smartphone Galaxy S8.

The heir to the huge Samsung business empire appeared in court Friday (Apr 7) at the start of his trial for embezzlement and perjury, part of a corruption scandal that brought down South Korea's president. Sales hit 50 trillion won, up 0.44 percent on year but down 6.24 percent on quarter, suggesting the world's largest chipmaker that is also a leader in smartphones and home appliances has done well in high-end products. Compared with the prior quarter, the revenue was down 6.24 percent.

The smartphone was unveiled last week and is due to go on sale next month.

Lee has effectively been at the helm of Samsung since his father suffered a heart attack in 2014.

More news: Pearl Jam inducted to Hall of Fame

An issue that caused Samsung's own Vice Chairman Jay Y. Lee to be arrested and he is now facing charges for bribing their former president Park Geun-hye.

Lee, who was arrested in February, has been charged with paying almost US$40 million to the now-impeached president's close friend Choi Soon-Sil, allegedly as bribes to secure policy favours. Prosecutors allege the money was given to obtain government backing for a contentious merger of two Samsung companies in 2015 that served as a key step in passing corporate control to Lee from his ailing father. The date seen on the phone's lock screen indicates that the pictures were taken Friday, April 7th, and the specs state that it's running a build of Android 7.0 from February 2017 - well after Samsung issued a global recall of the Note 7.

It indicated the effective management of Samsung by professional executives, rather than the heir of the founding family.

While Samsung will not provide detailed earnings results until the end of April, analysts tipped its chip division to earn a record 5.8 trillion won and propel the firm to its best overall operating profit since the third quarter of 2013. Samsung is expected to have posted a sound operating profit from its chipmaking business, which may have reached a whopping 6 trillion won.

Share