Samsung sees slight drop in Q2 sales and profit rise despite coronavirus’ spread

Samsung expects only a 7.4% decline in sales and 23% increase in operating profit this quarter as the novel corona virus continues to devastate the world. The company benefited from a one-time profit and demand for its processors, while its consumer-oriented companies were likely to have problems.

The company estimated on Monday that second-quarter sales of $ 51 trillion won to $ 53 trillion won ($ 42.8 to $ 44.5 billion), compared to $ 56.13 trillion won ($ 47.1 billion) Dollars) a year ago. An operating profit of 8 to 8.2 trillion Korean won ($ 6.7 to 6.9 billion) is also expected, compared to 6.6 trillion Korean won in the second quarter of 2019 ($ 5.5 billion).

Analysts interviewed by Thomson Reuters expected sales of 51.4 trillion won ($ 43.1 billion).

As usual, Samsung has not broken down its preliminary results or explained what helped or harmed its finances. However, it was found to benefit from a one-time profit related to its display business.

Samsung, one of the most famous companies in the world, sells more phones and televisions than any other provider. It also has a huge store that sells memory chips to device manufacturers around the world. In recent months, Samsung’s chip business has been boosted by data centers that rely on technology to store everything we do online. At the same time, the companies for which Samsung is better known have problems.

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2020 should be a strong year for the phone industry as innovations like 5G and foldable screens got people shopping again. Instead, financial problems and concerns about COVID-19 will limit the number of devices that businesses can make and the number of phones actually purchased. Even if the worst pandemic is behind the US and other markets, the global economy is likely to continue to struggle.

In April, Samsung warned of the corona virus in its last quarterly report would “significantly” affect its operations in the coming months. The company’s memory chip business benefited from the “robust” demand for servers and PCs as more and more people work from home. However, the company’s cellular, television and other business was impacted by the pandemic.