Sat, Oct 06, 2018 - Page 10 News List

Samsung operating profit hits record high on chip sales

AFP, SEOUL

Samsung Electronics Co yesterday forecast a record operating profit of 17.5 trillion won (US$15.49 billion) in the third quarter of the year led by solid demand for its memory chips.

Sales for the July-to-September quarter are expected to reach 65 trillion won, the world’s largest maker of smartphones and memory chips said in a regulatory filing.

The earnings forecast from the South Korean electronics giant beat market consensus of about 17.2 trillion won, with analysts expecting a jump in profits on strong performance by the company’s semiconductor unit, market researcher FnGuide said.

Third quarter operating profit was up 20.4 percent from a year ago, while sales jumped by 4.7 percent.

“Operating profit seems to be at its peak now,” Hyundai Motor Securities Co Ltd analyst Greg Roh told Bloomberg News.

“Early next year might be the right time to buy Samsung before growth picks up again in the bottom half of next year,” he added.

Samsung shares rose as much as 1.8 percent in early trading in Seoul.

Samsung withholds net profit and sector-by-sector business performance until it releases its final earnings report, which is expected later this month.

The South Korean tech giant has seen profits soar over the past few years, largely thanks to solid demand for memory chips used in mobile devices, which has helped offset weakening profits from its own mobile phone production.

The firm in August unveiled its latest Galaxy Note 9 model and is due to launch a new line up of mobile devices under its Galaxy line next week, fueling speculation over the world’s first bendable smartphone.

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