FX.co ★ Samsung’s operating profit boosts to $7 billion

Samsung Electronics said its operating profit likely soared by 17.4% to 8.1 trillion won ($7 billion) in the second quarter of 2016 compared to the same period a year ago. That would mark the biggest operating profit for Samsung since the first quarter of 2014 when the South Korean company made 8.5 trillion won.
Meanwhile, analysts predict 7.8 trillion won ($6.7 billion) in operating profit. Final results will be unveiled at the end of July.
The top maker of smartphones said it expects profit at 50 trillion won ($43.2 billion), up 3% from the prior year.
According to economists, an increase in the company’s operating profit is largely due to robust sales of its flagship Galaxy S7 smartphones. Analysts expect quarterly operating profit of Samsung’s mobile division at 4.5 trillion won ($3.9 billion). In the first quarter of 2015, the division made 3.89 trillion won ($3.4 billion) in profit. Some experts estimate that the tech giant shipped about 15 million units of Galaxy S7 in the second quarter. In the January-March period, the company sold 10 million units of the Galaxy S7 series.
The consumer electronics division is estimated to have raked in a profit of near 1 trillion won ($864 million) thanks to a rise in demand for its TVs based on quantum dot LEDs in North America.
Based on the preliminary figures, the operating margin of the Korean firm could come in at 16.2%.