Thursday, 19 July, 2018

Samsung sets its sights on record third quarter earnings

Samsung Electronics Predicts Record High Operating Profit for Q3 Samsung sets its sights on record third quarter earnings
Theresa Hayes | 13 October, 2017, 05:42

The South Korean tech giant also said it expected consolidated sales to be about 62 trillion Korean won, a touch lower than the 62.1 trillion won market forecast. Operating income nearly tripling to a record 14.5 trillion won ($12.8 billion) in the three months ended September, according to preliminary results.

Sales are expected to have surged 29.65 percent on-year to 62 trillion won.

Samsung did not announce the performance estimates of each business division but its semiconductor business is widely believed to have contributed greatly to the record-beating report. The company is set to release its final earnings report later this month.

The Galaxy Note 8 appears to be helping Samsung extinguish the ghosts of Note 7.

Samsung Electronics Vice Chairman Lee Jae-yong is now behind bars after a local court found him guilty of bribery and embezzlement in a massive corruption scandal that led to the ousting of former President Park Geun-hye.

Samsung said its July-September profit was likely 14.5 trillion won ($12.81 billion), compared with an average forecast of 14.3 trillion won from a Thomson Reuters survey of 20 analysts.

Both shipments and prices of the company's main products - DRAM and NAND memory chips - have been increasing over the past several months, he said.

Its information and mobile sector is estimated to have brought in three trillion won operating profit and the display business one trillion won. Samsung said that pre-orders for the phone were the highest-ever for its Note series.

As for the fourth quarter, Samsung Electronics is expected to continue its growth, backed especially by its highly competitive chip business. The younger Lee has appealed, denying charges.

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

Known as "Mr Chip", Kwon, 64, oversaw the growth of Samsung's component business which now generates much of the firm's profits, dwarfing earnings from smartphones and other mobile devices.

"Currently, Samsung is only harvesting from rich soil", an anonymous Samsung executive said.