Photo: Ian Muttoo_Flickr CC BY-SA 2.0

Samsung Electronics earnings are expected to hit $12 billion. The growth in profit was driven largely by the success of the company’s semiconductor business. On the other side Samsung management discourages employees from speaking up and identifying problems.

Photo: Ian Muttoo_Flickr CC BY-SA 2.0

On Friday July 7th Samsung Electronics said in a preliminary earnings statement that profit had surged to 14 trillion won, or about $12 billion, in the second quarter of this year, a 72 percent increase over the same period a year ago. Sales rose 18 percent to 60 trillion won. The official earnings are expected to be released on July 27.

The growth in profit was driven largely by the success of the company’s semiconductor business. With the latest figures, Samsung has overtaken Intel to become the world’s biggest chip maker by sales, according to C.W. Chung, an analyst at Nomura Securities who is based in Seoul.

Although Samsung is winning back customers, the technical failure exposed deeper cultural shortcomings. Former employees, suppliers and analysts have said that Samsung management discourages employees from speaking up and identifying problems. [Source: New York Times]

Read the full article here: Samsung, Seeking to Move Past Scandals, Forecasts Record Profit