Samsung boosts turnover during downturn

SEOUL - Samsung Electronics climbed the most in more than a month in Seoul trading after the world's second-largest chipmaker said second-quarter operating profit might have jumped more than five-fold from the preceding quarter.

Samsung rose 4.3 per cent to 627,000 won ($790) during trading on the Korea Exchange, its biggest advance since May 28.

Second-quarter operating profit was between 2.2 trillion won and 2.6 trillion won, the Suwon, South Korea-based company said in a filing yesterday, without providing year-earlier comparisons. The consolidated numbers include earnings from overseas affiliates and are preliminary.

The operating profit projection surpasses the 470 billion won first-quarter estimate provided in April.

Samsung expects second-quarter revenue of 31 trillion won to 33 trillion won, exceeding the 28.7 trillion won estimated for the preceding quarter.

"Samsung's market share has been rising during the downturn and that will lead to higher market leadership," said Lee Sun Tae, an analyst at Meritz Securities in Seoul.

The company provided guidance ahead of its quarterly earnings announcement for the first time to help minimise speculation. It plans to continue providing preliminary estimates each quarter.

Samsung, which will provide earnings details on July 24, was the biggest contributor to the Korean Kospi stock index's 0.7 per cent gain yesterday. Shares have risen 39 per cent this year, beating the 27 per cent advance in the Kospi.

- BLOOMBERG