Samsung Electronics Co. marked an earning profit for the first quarter of 2009, beating earning expectations for the period, despite of the global economic recession, the company reported on Friday.

Samsung Electronics, the world's leading computer memory chipmaker, swung back to the positive territory in the January-March period, with a net profit of 619 billion won (US$460.84 million), up 640 billion won (US$476.47 million) from the previous quarter.

Although the figure plummeted 72 percent from a profit of 2.19 trillion won (US$1.63 billion) a year earlier, as weak demand dragged down prices amid the economic downturn, it was much better than the market expectation of around 150 billion won (US$111.67 million), the company explained.

Sales increased 8.5 percent on year to 18.57 trillion won (US$13.83 billion) over the cited period, while operating profit nosedived to 148 billion won (US$110.18 million) from 2.15 trillion won (US$1.60 billion) from a year earlier, it said.

"The first-quarter earnings were better than expected, and its earnings will improve down the road as production cuts may help ease an industry glut and price gains," a local analyst said.

The data came as the company strived to reduce its overall expenditures and industry-wide output cuts pulled up prices of dynamic random access memory (DRAM) chips and flash memory chips, Samsung explained.

In particular, Samsung's mobile phone sector is expected with a record-high market share and highest-level earnings among its peers, thanks to robust sales, it added.

Despite of better-than-expected results, it is still premature to be optimistic about the second-quarter outlook or to expect an upturn in demand and the economic cycle, an official at Samsung said.

(Xinhua News Agency April 24, 2009)