Samsung Electronics sees record preliminary 2Q profit but shares fall

Samsung Electronics on Tuesday reported preliminary second-quarter operating profit of 89.4 trillion won ($58.4 billion), versus 57.2 trillion won in the prior period. Operating profit from the same period a year earlier was 4.7 trillion won. Samsung shares traded nearly 5% lower at Tuesday's open. The tech giant reported revenue for the April-to-June period of 171 trillion won, up from 133.9 trillion won in the previous quarter. The results include deducted one-off expenses for employee bonus provisions following recent labor negotiations, according to analysts. Earlier this year, Samsung agreed to scrap its 1,000% base salary bonus cap and earmark 10.5% of its operating profit for bonuses, capitulating to a weeks-long labor union protest that demanded a fair share of the company's earnings.