Samsung misses 2Q targets, but remains upbeat

The world’s third largest maker of mobile handsets, Samsung Electronics [05930.KS], yesterday reported net profits of KRW1.13 trillion for the second quarter of 2003, down more than 40% on the corresponding period of 2002, but said it expected results to pick up in the second half of the year in line with increased consumer demand in the aftermath of the SARS virus. Samsung, which is also the world’s largest producer of semiconductors, said turnover reached KRW9.84 trillion, up slightly from KRW9.73 trillion in 2002 and KRW9.6 trillion in the first quarter, on the back of substantial growth in the sales of its LCD products. The company sold twelve million mobile terminals in the second quarter, a million below its target, but said it expected to hit its full year target of 52.5 million units. Investors reacted to the company’s sanguine approach by pushing its shares up 1.2% at the close of trading on the Seoul Stock Exchange.