Samsung's Q2 net profit hits record high

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The South Korean tech giant achieved strong earnings despite leadership problems. Analysts were expecting a profit of about 9.75 trillion won, according to a projection by Bloomberg.

Operating income of Samsung C&T's resort business reached 67 billion won in the second quarter, up 11.6 percent from last year, on sales of 688 billion won that was 4.8 percent higher on year thanks to growing landscape business and a rise in demand for its catering services in overseas markets.

Automakers were also among the losers with Hyundai Motor, the No. 1 automaker, falling 1.01 percent to end at 146,500 won.

Analysts expect the momentum to continue for the rest of the year, driven by the release of Samsung's next smartphone, the Galaxy Note 8, and sustained demand for memory chips. That demand, coupled with a tight supply, has seen the price of memory chips shoot up over the a year ago, bringing an unprecedented level of profitability to suppliers such as Samsung.

Operating profit was up 72.9 percent from the previous year to 14.07 trillion won, while the firm's overall sales increased 19.7 percent to 61 trillion won. Samsung is also set to outperform Apple Inc.in quarterly earnings for the first time in its history.

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Apple, which is due to report its financial results on Tuesday, is forecast to have booked 8.2 billion dollars in net profit during the three-month period, according to FactSet, during a typically slow season for the company. It also announced the cancellation of KRW 2 trillion worth of its own shares.

The firm said huge sales of its new Galaxy S8 smartphone and demand for its memory chips were behind the jump in April-June and predicted another blockbuster report for the current quarter to September.

Samsung is set to unveil its new Note device next month in NY, just over a year after the exploding battery crisis that saw it remove the Note 7 from shelves. The rising use of vehicle connectivity and the "internet of things" is expected to drive still further demand for the chips that have helped Samsung move ahead, at least for now. The company said that growth is slowing for products used in smartphones, but remains solid for servers.

Peter Lee, an analyst at NH Investment Securities, said the biggest variable of Samsung's earnings for the latter half of the year will be the launch of Apple's new iPhone.

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