* First ever earnings guidance from Samsung
* Q2 consol op profit seen up to 2.6 trln won, jump vs Q1
* Q2 sales seen at 31-33 trln won, up from year-ago and Q1
* Shares gain more than 4 percent in flat market
* All key businesses outperforming - analyst
(Adds background, rivals, updates shares)
By Rhee So-eui and Marie-France Han
SEOUL, July 6 South Korea's Samsung Electronics
(005930.KS), the world's top maker of memory chips and flat
screen TVs, forecast second-quarter earnings well above market
estimates, driving its shares up more than 4 percent on Monday.
Technology companies around the world have seen their
earnings and valuations hit by the global downturn, which has
prompted consumers to cut back spending on electronics goods.
Analysts said the guidance reflected Samsung's strong
market position and it was too soon to say the industry was on
"It looks like all key businesses -- semiconductors, LCD
and mobile phones -- outperformed expectations," said Lee
Min-hee, an analyst at Dongbu Securities.
"We've been expecting Samsung's earnings to show a V-shape
recovery in the first half, and it looks like it's a much
Samsung expects to post a consolidated operating profit for
April-June of 2.2 trillion-2.6 trillion won ($1.74
billion-$2.05 billion) when it reports second-quarter earnings
on July 24, it said in a filing to the Korea Exchange.
Samsung said it was the first time it had provided earnings
guidance and was aimed at reducing confusion ahead of results,
but it did not include a breakdown of divisional performance or
"The guidance is very likely to translate into a
parent-basis operating profit well above street forecasts of
about 1 trillion won," said Dongbu's Lee.
Samsung Electronics, the largest share on the KOSPI .KS11
and accounting for 10 percent of the main index's market cap,
was up 4.2 percent at 626,000 won by 0243 GMT. It was the main
factor behind the KOSPI's 0.1 percent rise, the only positive
spot in a weaker Asian market.
Samsung stock rose as much as 4.7 percent at one point, its
highest intraday percentage gain since early February.
Samsung ranks ahead of Japan's Sony (6758.T) in televisions
and trails only Finland's Nokia NOK1V.HE in mobile phones.
"A very good performance in televisions may explain the
strong consolidated figures," said Peter Yu, analyst at BNP
Paribas. "TV margins are expected to be very high, especially
in the newly launched LED televisions," Yu said, referring to
the latest liquid crystal display (LCD) models using
light-emitting diodes (LED) as backlights.
SCEPTICISM ON TECH REVIVAL
Analysts remained sceptical as to whether Samsung's bullish
forecast signalled a recovery for the hard-hit IT industry.
"It would be difficult to say Samsung's earnings guidance
signals a recovery in the overall technology sector," said Park
Hyun, an analyst at Prudential Investment and Securities. "It
would rather show Samsung's improving competitiveness."
After posting its first-ever quarterly net loss in the
fourth quarter of 2008, Samsung swung back to profit in the
first quarter of this year with an earnings report that
suggested the worst of the slump may be over.
In May, Sony forecast it would post back-to-back yearly
losses for 2008 and 2009 for the first time since listing in
Nokia, meanwhile, posted its first-ever quarterly pretax
loss in the first quarter of this year and is drastically
cutting annual costs at its key handset unit as it faces
declining cellphone demand.
Samsung's consolidated operating profit range represents a
significant jump from the previous quarter's 470 billion won,
and is comparable to 2.4 trillion won profit a year ago.
On a parent basis, which excludes Samsung's numerous
overseas subsidiaries, the company posted operating profit of
148 billion won in the first quarter and 1.89 trillion won in
the year-ago period.
Samsung forecast second-quarter consolidated sales of 31-33
trillion won, compared with 28.7 trillion won in the first
quarter and a revised 29.1 trillion won in the 2008 second
According to Reuters Estimates, Samsung is forecast to post
1.18 trillion won in second-quarter net profit. No market
consensus data is available for consolidated operating profit
(Editing by Jonathan Hopfner and Lincoln Feast)