Samsung profits below forecasts

Profit margins for mobile phones are being squeezed

Samsung Electronics has reported worse-than-expected second quarter results and said that a sharp recovery was unlikely in the current quarter.

Nonetheless, net profit between April and June came in at 2.14 trillion won ($2.12bn; £1.07bn), 52% up on the same period of last year.

But the figure was below the previous quarter's profit of 2.19 trillion won.

Problems include a sluggish memory chip market and low margins for mobile phones and flat screen televisions.

The news sent Samsung shares down more than 5%.

"It's unlikely that we will be achieving a sharp recovery [in the third quarter]," said Chu Woosik from Samsung.

The company, which is the world's top producer of liquid crystal display televisions, also warned that demand for such products may fall because of the economic slowdown.

Samsung shares had risen sharply on Thursday, before the earnings were released, on hopes that the company would announce a share buyback, but it said that it had not yet decided whether to do so.