Samsung Expects Record Q3 Operating Profit

James Marshall
October 13, 2017

The company said its operating profit will come in around 14.5 trillion won ($12.8 billion), almost tripling from the year-ago period when it was suffering the fallout from its Note 7 recall.

The operating profit figure was slightly higher than the market's consensus of 14.3 trillion won, a number compiled by Yonhap Infomax, the financial arm of Yonhap News Agency, based on 21 local brokerage houses.

It is also a 3 percent rise from this year's second quarter - its previous highest - of 14.07 trillion won in profits.

Over recent quarters, the world's largest maker of memory chips, smartphones and other electronics products has seen its booming semiconductor business as a major earnings driver. Analysts have tipped its chip division to propel the firm to record overall profit. Final numbers are usually released two weeks later. They have climbed more than 50 percent this year.

Brisk sales of the latest Galaxy Note 8 smartphone, launched in mid-September, further helped lift its mobile profit as it recovered from last year's costly withdrawal of the fire-prone Note 7, analysts said. It's also seeking to release a phone with a bendable display next year to tighten the lead with Apple and fend off challenges from Huawei Technologies Co. Contract prices for 32 gigabyte DRAM server modules climbed 7.2 percent in the September quarter from the June period while prices for 128 gigabit MLC NAND flash memory chips rose 4.7 percent in the same period, according to inSpectrum Tech Inc. Analysts said Samsung's strong earnings are attributable to increased shipments of chips.

Its de facto chief, Lee Jae-yong, a vice chairman at the company and the only son of its ailing chairman, was convicted in August and sentenced to five years in prison for crimes related to the corruption scandal that took down South Korea's president.

Other reports by Click Lancashire

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