Samsung tips huge jump in profit as heir to stand trial
- Author: Latoya Cobb Apr 11, 2017,
Apr 11, 2017, 5:16
(AP Photo/Lee Jin-man). In this March 24, 2017 photo, a woman walks past a logo of Samsung Electronics in Seoul, South Korea. Samsung Electronics said Friday its first-quarter profit jumped 48 percent, a better-than-expected result that analysts believed t.
Samsung, in a regulatory filing, said its January-March profit was likely 9.9 trillion won ($8.76 billion), compared with an average forecast of 9.4 trillion won from a Thomson Reuters survey of 18 analysts.
SK hynix's operating profit is forecast to surge to 2.2 trillion won, up from 0.56 trillion won a year earlier.
Samsung's official earnings report will be announced at the end of this month.
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.
The vice chairman of Samsung Electronics was indicted on bribery, forgery, and embezzlement charges.
Lee is due to make his first appearance at court later Friday.
The defense team said Lee and other former and current Samsung executives felt threatened in their interactions with Choi Soon-sil as Samsung provided financial support.
Lee, who was arrested in February, has been charged with paying almost $40 million to the now-impeached president's close friend Choi Soon-Sil, allegedly as bribes to secure policy favors. They argued that the huge sum of corporate money was used for Lee's personal benefit - to secure a business merger and lobby regulators to help strengthen his control over Samsung.
Defense lawyers have said Lee and the others deny all the charges.
Results from a survey undertaken by USA consumers after Samsung halted its Note 7 production, revealed that while the company faces some short-term challenges, the controversy will not tarnish the brand in the long-term. It is scheduled to give more details including quarterly net profit later in the month.
The industry believes the memory chip market since the latter half of a year ago has entered a new super cycle, a period of an upturn as the result of replacements with high-performance memory in PCs and strong demand for mobile devices.
However, the company's longer-term performance is likely to remain at the mercy of the success of its new Samsung Galaxy S8 smartphone, set to hit shelves on 21 April 2017. The S8 was its first major smartphone launch since the fire-prone Galaxy Note 7 fiasco.