Samsung's Q2 net profit hits record high

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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.

Net profit increased to KRW 11.05 trillion from KRW 5.85 trillion a year ago, as sales rose 20 percent to KRW 61.00 trillion.

Samsung is also upbeat about its business in the second half of the year.

While Mr Lee and Ms Park battle allegations of bribery and other charges, Samsung is thriving thanks to tiny microchips called DRAM and NAND memory chips, which are needed to store and process data in servers and mobile devices.

Samsung Electronics said it expected the memory chip boom to continue in the current quarter. It is the fifth consecutive quarter for Samsung C&T to report operating profit since it swung to profits in the second quarter previous year thanks to consistent efforts to reform its business.

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Intel, which reports its quarterly earnings later Thursday, is expected to report $14.4 billion in quarterly revenue.

Samsung said sales were led by its flagship Galaxy S8 smartphone, while sales of mid-range and low-end phones declined. Analysts expect the iPhone maker to report revenue of $44.9 billion and an operating profit of $10.5 billion, according to Reuters and Bloomberg data.

Samsung said its record-high earnings were mainly buoyed by the booming chip market amid rising demand for storage products.

The company released its financials for Q2 today and the company earned $54.8 billion total with $12.6 billion in profit. Samsung has said it plans to spend $18 billion in the next four years to expand memory chip production capacity at its South Korean plants.

Samsung's display business, which makes high-end OLED display panels for smartphones and TVs, also saw solid earnings of 1.7 trillion won, while its mobile business reported 4.1 trillion won in operating profit, driven by sales of its Galaxy S8 series. "As these [cloud infrastructure] players grow, they will only need more chips and that helps Samsung".

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