Published: Fri, October 13, 2017
Finance | By Loren Pratt

Samsung sets its sights on record third quarter earnings

Samsung sets its sights on record third quarter earnings

Samsung Electronics Co Ltd said on Friday its CEO and Vice Chairman Kwon Oh-hyun had made a decision to step down from management, as it forecast record third-quarter profits on the back of soaring memory chip prices.

Samsung Electronics on Friday said it was expecting record operating profits of about 14.5 trillion Korean won ($12.8 billion) for the September quarter, seeing a massive jump of almost 179 percent from the same period a year earlier.

"The company has been riding a global semiconductor boom", he said, adding the semiconductor business alone is believed to have contributed 10 out of the 14.5 trillion won operating profit.

Samsung did not announce the performance estimates of each business division, although the chip business is anticipated to have played a key role in the record-beating report. The guidance, released today ahead of full earnings later this month, did not provide specific divisional results.

Samsung's mobile division saw its operating profit plunge to 100 billion won in the third quarter of 2016 due to the suspended production of the Galaxy Note 7, which recovered to 2.5 trillion won a quarter later.

Its information and mobile sector is estimated to have brought in three trillion won operating profit and the display business one trillion won.

He cemented Samsung Electronics' position in memory chips and expanded the contract chip manufacturing business. Analysts said Samsung's strong earnings are attributable to increased shipments of chips.

As for the fourth quarter, Samsung Electronics is expected to continue its growth, backed especially by its highly competitive chip business.

The consumer electronics division will also benefit from strong seasonal demand, he added. Lee was convicted of corruption and sentenced to five years in prison in August.

Kwon is 65 and has been the face of Samsung in the absence of the company's de facto chief, Lee Jae-yong.

Shares in Samsung Electronics were trading down 0.77 percent on heavy profit taking in mid-morning trade.

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