Samsung logs near-record profit in Q1 despite absence of heir

21 Avril, 2017, 19:18 | Author: Come Portier
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This is on top of the political scandal that has engulfed the entire country of South Korea too. Experts estimate Samsung to have earned more than 6 trillion won from chip business in the first quarter, beating 4.95 trillion won profit in the fourth quarter.

The result was higher than the market consensus of 9.3 trillion won, according to financial data provider FactSet. Its first-quarter operating profit neared the historic high of 10.2 trillion won in the third quarter of 2013 by adding 7.4 percent to the strong fourth quarter on a spike in both worldwide chip prices and demand.

Four other Samsung executives have also been charged.

Lee's arrest, the first for a Samsung chief even though his father was twice convicted of bribery, sent shockwaves through the company and triggered the announcement of a major reform of its top-down management style.

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The scandal engulfed Park's administration, prompted millions of South Koreans to regularly protest in the streets and culminated in Park's ousting in March. Samsung's share price has also been performing well, climbing steadily over the last few months despite all the drama the company has been facing at home.

The legal team said the prosecutor's charges against Lee were based on "prejudice and prejudgement" and not backed up by evidence. It is scheduled to give more details including quarterly net profit later in the month. Figures were boosted this year due to increasing demand for memory chips and display screens.

Past year it had to pull its Galaxy Note 7 smartphones because their batteries were exploding.

Industry officials said the Galaxy S8 could break the previous preorder record set by the Galaxy Note 7, though the preorder period for the S8 is two days shorter than that of the Note 7. The prosecution is trying to determine whether the donations were given as bribes in exchange for government support for the company's bid to enter the lucrative duty-free business.

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