South Korea's Samsung Electronics says strong demand for its mobile devices and ultra-thin displays helped it to post a record net profit and revenue for the second quarter.
For the three months ended June, it posted a 48 percent rise from last year in net profit at 5.19 trillion won (US$4.53 billion). This was on the back of a 21 percent jump in revenue to 47.59 trillion won (US$41.6 billion) over the same period.
In its results announced Friday, Samsung noted that by business unit, its mobile communications division was one of the leading growth drivers in the quarter with 20.52 trillion won (US$17.98 billion) in revenue.
"With the successful launch of this year’s flagship GALAXY S III smartphone and robust GALAXY Note sales, the handset unit saw earnings jump by 75 percent from a year earlier," Samsung said in its press release. Earlier this month, it had revealed that operating profit for the quarter rose 79 percent to 6.7 trillion won (US$5.9 billion), which analysts had linked to a boost from smartphone sales.
"As we move into the second half, continued fiscal instability in Europe and its effect on the global economy will result in the possibility of a slower-than-expected recovery and intensified market competition," said Robert Yi, senior vice president and head of investor relations, in the statement.
Yi added that despite the economic uncertainties, "Samsung will enhance the competitiveness of our main businesses and reinforce our value-added, differentiated products as a means to improve earnings." Earlier this month, the company was reported to have entered "crisis management" mode in order to mitigate the impact of the worsening Eurozone crisis.
Samsung forecasts the third quarter will be marginally positive "as demand for consumer electronics goods, including smartphones and tablets, remains strong and a stream of new products hit the market". It added that supply for display panels is also expected to increase, as TV makers prepare for the year-end holiday season.