Published: Fri, October 13, 2017
Science | By Hubert Green

Samsung Electronics predicts record high operating profit for Q3

Samsung Electronics predicts record high operating profit for Q3

Tech giant Samsung Electronics Co Ltd estimated on Friday its third-quarter operating profit almost tripled from a year earlier, beating expectations as strong memory chip prices likely padded margins.

Samsung also said it expects to see record third quarter revenues of 62 trillion won (5.4 billion), which is up 29.7 percent from one year ago.

Samsung Electronics said Friday it expected profits to hit an all-time record in the third quarter to September as the South Korean IT giant enjoys booming semiconductor sales.

Experts also said Samsung's flash memory chip business was likely to have played a major role in the company's success this quarter.

The Note 8 received 850,000 pre-orders in South Korea, the highest ever for the series. The guidance, released today ahead of full earnings later this month, did not provide specific divisional results.

Samsung raked in 8.03 trillion won from the chip business in the April-June period in operating profit, along with 4.06 trillion won from the mobile arm.

The company also estimates third-quarter sales of 62 trillion won compared to 47.82 trillion won past year.

Mirae Asset Daewoo Securities added the consumer electronics division will experience growth on the back of strong seasonal demand.

Kwon has been working as de facto head of the company following the imprisonment of the Samsung heir Lee Jae-yong.

Kwon is one of the two vice chairmen at Samsung Electronics with Jay Y. Lee, who was sentenced to five years in prison in August for bribing a presidential confidante in return for help in succeeding his hospitalized father, Chairman Lee Kun-hee.

The rising presence of Chinese rivals coupled with US trade protectionism headed by President Donald Trump are also major hurdles, they added.

Samsung shares were trading at a new record high of 2.74 million won as of Thursday, as investors bet on record earnings in 2017 driven by growing demand for memory chips with ever greater processing power.

Like this: