Samsung Says 2Q Net Profit Surges 83 Percent

FILE - In this May 17, 2010 file photo, an employee of Samsung Electronics adjusts LED TV screens at...

FILE - In this May 17, 2010 file photo, an employee of Samsung Electronics adjusts LED TV screens at its branch in Seoul, South Korea. Samsung Electronics Co.'s net profit surged 83 percent in the second quarter to a record high amid increased sales and strength in its semiconductor and flat panel businesses, the company said Friday, July 30, 2010. (AP Photo/Lee Jin-man, File)

(AP)

Samsung's net profit surged 83 percent in the second quarter to a record high amid strength in semiconductors, flat panels and TVs, though the electronics giant cautioned such stellar results may be unsustainable amid intensifying competition in areas such as mobile phones.

Samsung earned 4.28 trillion won ($3.61 billion) in the three months ended June 30, it said in a regulatory filing. Net profit a year earlier was 2.33 trillion won.

The result bested Samsung's previous all-time high net profit of 3.99 trillion won set in the first quarter of this year. The company also reported record operating profit of 5.01 trillion won.

The Suwon, South Korea-based company's earnings were driven by surging profitability in its semiconductor and LCD businesses, though it reported operating profit declines in digital media — which includes televisions and digital home appliances — and telecommunications, which includes mobile phones.

Samsung Electronics Co. is the world's largest manufacturer of computer memory chips, flat screen televisions and liquid crystal displays. It ranks No. 2 in mobile phones. It produces both consumer electronics devices such as flat screen televisions and mobile phones as well as key components.

The company said total second-quarter sales totaled 37.89 trillion won, 17 percent higher than 32.51 trillion won last year.

"In the second quarter, our component businesses performed very strongly, yet it was a more challenging quarter for our set businesses," Robert Yi, head of investor relations, said in a release. Set businesses refer to products such as televisions, appliances and phones.

Continuing strong demand combined with supply constraints for computer memory chips helped boost prices, Samsung said in separate explanatory materials for investors. Demand for flash memory chips, meanwhile, was driven by new applications such as for smart phones and tablet computers.