Samsung estimates 7.5 percent gain in 1Q operating profit

Staff Writer
Columbus CEO

SEOUL, South Korea (AP) — Samsung Electronics says its first-quarter operating profit is estimated to have increased 7.5 percent over a year earlier.

The South Korean tech juggernaut put its January-March operating profit at 6.6 trillion won ($5.7 billion) in its Thursday earnings preview. That represents a gain from 6 trillion won a year earlier.

The result beat expectations. Analysts surveyed by FactSet, a financial data provider, forecast 5.5 trillion won.

Sales rose 4 percent to 49 trillion won. Samsung did not disclose net profit or breakdown figures among its business divisions.

Analysts said sales of its flagship Galaxy S7 smartphones were much better than expected amid the absence of new devices from major competitors.

The company was able to cut costs in phone components and reduce the number of cheap phone models, they said.