Samsung Electronics, the world's top maker of memory chips and flat screen TVs, forecast second-quarter earnings well above market estimates.

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 the mend.

"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 steeper recovery."

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 other details.

"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 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 in televisions and trails only Finland's Nokia 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.

By: DocMemory
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