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Samsung predicts record-high profit

Samsung Electronics, the world's largest maker of memory chips, mobile phones, flat-screen panels and televisions, has said its preliminary second-quarter operating profit jumped nearly 80% from a year ago to a record high.

Analysts attributed the sharp rise to its mobile business.

The operating profit for April to June was estimated at between 6.5 trillion and 6.9 trillion won (£3.6- £3.9 billion), the company said.

The figure, in line with an average estimate of analysts, beats Samsung's previous record of 5.85 trillion won profit, reported in the first quarter of 2012.

Samsung said revenue for the second quarter was expected to come in between 46 trillion and 48 trillion won, up around 19% from the year-earlier period.

Although Samsung did not break out figures for each division, analysts believe at least four trillion won of its profit is from its mobile business.

Brisk demand for the high-end mobile phones helped Samsung offset a weaker profit growth in its semi-conductor and other consumer electronics businesses during Europe's debt crisis.

Samsung began selling the latest version of the Galaxy smartphone on May 29, in an attempt to get a head start before its rival Apple announces a new iPhone.

Analysts estimate Samsung shipped between 48 million and 52 million units of smartphones in the second quarter, including around six million Galaxy S III smartphones.

Samsung will announce full results later this month.

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