Samsung posts record profit

Samsung Electronics Co., the biggest Asian maker of semiconductors, flat screens and mobile phones, reported record profit after rebounding demand for personal computers drove up chip prices.

Bloomberg Photo

First-quarter net income rose almost seven-fold to 3.99 trillion won ($3.6 billion) in the three months ended March 31, from 582.2 billion won a year earlier, the Suwon, South Korea- based company said in a statement today. Sales, including those of overseas affiliates, increased 21 percent to 34.64 trillion won.

Samsung said it expects to boost spending and earnings growth to extend into this quarter, joining technology companies including Intel Corp. and Apple Inc. in signaling a revival in demand for electronics ranging from televisions to PCs. 

Analysts predict Samsung's earnings growth will probably extend until the third quarter, while higher memory-chip and flat-panel prices will help the company post record profit this year.

The likelihood of increased spending "reflects a confidence in demand," said Chang In Whan, president of Seoul- based KTB Asset Management Co., which manages the equivalent to $10 billion in assets. "I think overall the company will post stronger earnings than we previously anticipated.?"

Samsung, which climbed 77 percent last year, rose 1.6 percent to 838,000 won at 10:58 a.m. in Seoul trading, while the benchmark Kospi index gained 0.8 percent. The shares have climbed 4.9 percent this year, compared with the 3.6 percent advance by the Kospi. (Bloomberg)