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Samsung and LG Electronics both see operating profit in Q2 Updated: 2020-07-30 17:19:54 KST

Samsung Electronics' operating profit for the second quarter of 2020 amounted to around six.eight billion U.S. dollars.
That is the largest figure since the final quarter of 2018.
The South Korean tech giant said that while its total sales were down some 5.6 percent on-year amid COVID-19, its operating profits were up 23-and-a-half percent.
Samsung says this was largely driven by the increased profitability of memory chips and displays, along with high demand for the IT products people have been using during lockdowns.
For the latter half of 2020, Samsung says it expects demand to rebound on products like smartphones while seeing firm demand for memory chips with the release of new mobile and game console models.
But there are some analysts who think global demand for semiconductors could decline in the following quarter.

"As companies have already bought sufficient stock of semiconductors in the first half of the year, they will have to reduce purchases in the following quarters. This could lead to decline in sales of semiconductors in the third quarter."

Samsung Electronics aims to improve earnings in the following quarter by cutting production costs and improving efficiency.
However, it says the pandemic remains a constant source of uncertainty.

LG Electronics also managed to see an operating profit of 410-million U.S. dollars for the same period.
That is around 24% down from the second quarter of the previous year, but is still higher than market expectations.
Focusing on sales of premium home appliances and reducing production costs, the company recorded its highest ever second quarter operating profit to sales ratio.
It attributed the figure to customers' increased interest in health and hygiene, which led to higher sales of products like its drying machines and Styler outfit cleaning machines.
LG Electronics is also keeping its eyes on the global business environment amid COVID-19 but expects to see demand for some products like TVs pick up in the second half of the year.
Kim Sung-min, Arirang News
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