A record $4.7 billion quarterly operating profit was posted by Samsung Electronics Co that was driven booming smartphone sales. The company will be spending $22 billion this year to boost production of chips and flat screens to pull further ahead of smaller rivals.

The world’s top technology firm by revenue, Samsung, is locked in breakneck competition with Apple Inc in the red-hot smartphone market.

Research firm Strategy Analytics put Samsung sales at 36.5 million smartphones in October-December, with 3rd-ranked Nokia on 19.6 million.

“The battle of the two big smartphone powers, Apple versus Samsung, will go on,” said Baik Jae-yer, fund manager at Korea Investment Management. “The smartphone market will expand this year to more mid-and low-end models that are affordable to the wider public,” Baik said. “Rather than focus on market share, I’d point out the strong contribution of Samsung’s handset business to earnings growth and margins.”

In a recent statement, marketing group Aegis said it is expected to meet market consensus for full-year underlying profit as it accelerates cost cuts in a more difficult than expected environment.

Aegis said first-half revenue fell 10.8 per cent organically to £636.7million ($1.04billion) but it beat the average forecast of £622.7million in a poll of analysts.

From Dailymail.co.uk:

‘Market conditions are expected to remain difficult, and we are not forecasting on the basis of any upturn in the second half, although both Aegis Media and Synovate will face easier second half comparatives,’ Aegis said in the statement.

First-half underlying operating profit fell 29 per cent at constant currencies to £51.1million.

WPP, the world’s biggest advertising agency by revenues, reported this week that first-half like-for-like sales fell 8.3 per cent, while French rival Publicis posted a second-quarter drop of 8.6 per cent.

Aegis trades at 11.8 times 2009 earnings, according to Reuters Estimates, slightly above the UK agency sector average of 10.3 times.

The company, made up of marketing division Aegis Media and market-research division Synovate, was able to maintain its interim dividend of 0.96 pence.