Samsung Electronics expects record US$12.8b Q3 operating profit

Samsung Electronics expects record US$12.8b Q3 operating profit

Samsung Electronics expects record US$12.8b Q3 operating profit

The electronics giant said earlier Thursday it expects to record a third-quarter operating profit of 14.5 trillion won ($12.8 billion), almost triple from the year-ago period, thanks largely to continued strong demand for memory chips. That was marked a new record for the company, which reported a 14.1 trillion won operating profit in the second quarter.

Sales are expected to have surged 29.65 percent on-year to 62 trillion won. The company said it will announced its final third quarter results later this month.

The operating profit figure came in line with the market's consensus of 14.3 trillion won, compiled by Yonhap Infomax, the financial arm of Yonhap News Agency on 21 local brokerage houses.

KB Securities added that rising sales of the Galaxy S8 and Galaxy Note 8 smartphones will also improve the profitability of the mobile division, putting the sector's operating profit estimate at a better-than-expected 3.3 trillion won.

He cemented Samsung Electronics' position in memory chips and expanded the contract chip manufacturing business.

The South Korean electronics firm said its third quarter profits will be its highest ever, thanks in part to strong demand for its flash memory chips.

Kwon Oh-Hyun, co-vice chairman and chief executive officer of Samsung, will retire from company management in 2018.

The consumer electronics division will also benefit from strong seasonal demand, he added.

Lee, who was found guilty in August of bribery, perjury and other charges relating to payments made by Samsung to ousted president Park Geun-Hye's secret confidante Choi Soon-Sil, is appealing his five-year sentence and says he is innocent.

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

Samsung's stock price briefly hit a record of 2.74 million won per share on Thursday, before rolling back slightly to 2.72 million won per share at the time of publication. Samsung announced its earnings guidance before the market opened Friday.

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