Samsung Registers Quarterly Profit of $5.1bn

Seoul. Samsung Electronics Co, Asia's largest consumer-electronics maker, posted first-quarter profit that beat analyst estimates as gains from selling phones and TVs helped mask a slump in earnings at the chip business. Operating profit rose to a quarterly record 5.8 trillion won ($5.1 billion) in the three months ended March 31 from 2.95 trillion won a year earlier, the Suwon, South Korea-based company said in a statement today. That surpassed the 5 trillion won average of 32 analyst estimates compiled by Bloomberg.

Profit at the mobile-phone business probably more than doubled in the quarter from a year earlier after Samsung introduced the Galaxy Note and new smartphones to compete with Apple Inc, a key customer that it's also fighting in a patent battle on four continents. Samsung is also bringing out 3D and internet-enabled TVs to counter falling chip prices that are eroding earnings at the semiconductor unit.

"Sales of new models of smartphones, such as the Note, were better than expected," James Song, a Seoul-based analyst at Daewoo Securities Co., said by phone today. "They have a good line-up of new products, so they will be able to keep the momentum alive for two or three quarters, at least."

Samsung rose 0.1 per cent to 1,331,000 won on the Korea Exchange as of 9:09 a.m. while the benchmark Kospi index was little changed. The shares have gained 26 per cent this year.

Operating profit may be 200 billion won higher or lower than today's estimate when audited results are announced later this month, Samsung said. The company didn't provide net income figures or a breakdown of divisional earnings.

First-quarter sales jumped 22 per cent to 45 trillion won.

Operating profit at the telecommunications unit more than doubled to 3.5 trillion won, according to the median estimate of six analysts surveyed by Bloomberg News. Sales are estimated to have gained 75 per cent to 18.6 trillion won.

Samsung probably sold 44 million smartphones in the first quarter, more than tripling from a year earlier, Matt Evans, a Seoul-based analyst at CLSA Asia-Pacific Markets, said in an April 2 report. That would exceed Apple's shipments "by a significant margin," making Samsung the top smartphone seller during the three-month period, according to the report.

The maker of Galaxy devices aims to double sales of smartphones and tablet computers this year, helped by new products, the company said in a statement in February. Including basic phones, Samsung expects to sell about 380 million handsets this year, after shipping a record 300 million units last year.