Samsung Announces Record Third Quarter Profit

Samsung Electronics on Friday announced it broke tape for the highest turn a profit in a single quarter, registering 65 trillion won ($57.5 billion) in revenue in the third quarter of 2018.

It earned 17.v trillion won ($15.iv billion) in operating turn a profit. The revenue is an over xx pct increment (yr on year) and most 12 per centum high from the first quarter of this year, manifestly on the dorsum of robust returns from its scrap business.

Operating profit rose from 14.53 trillion won posted a year earlier, the South Korean tech behemothic said in a regulatory filing, Yonhap news bureau reported. Sales advanced iv.7 percent to achieve 65 trillion won over the cited period, the company added.

The operating profit was above the market'south expectation of 17.1 trillion won, based on a survey conducted by Yonhap Infomax on 21 South Korean brokerage houses. The sales judge stood at 65.one trillion won.

The July-September functioning marked the highest quarterly figure e'er posted by Samsung Electronics. The previous record was fifteen.6 trillion won achieved in the first quarter of 2018. The operating profit to sales ratio came to 26.9 per centum, also a record high.

Samsung did non announce the net turn a profit for the third quarter, nor the performances of respective business divisions. The finalized earnings report will be announced later on this month.

The record earning was evidently owing to its chip business, manufacture watchers said.

The 3rd-quarter operating profit of the scrap business organisation is expected to take hovered in a higher place 13 trillion won for the first fourth dimension e'er.

Despite the weaker outlook over the global chip industry, industry watchers said Samsung yet sought to aggrandize sales by finding new business opportunities, while too enjoying strong seasonal demand.

With the area responsible for around fourscore pct of Samsung's quarterly operating turn a profit, however, industry watchers said the company will need to diversify its portfolio to evade potential pitfalls down the road.

The smartphone business is expected to have posted a weaker performance compared to a year earlier.

Local analysts guess Samsung earned effectually 2.3 trillion won in operating profit from the IT and mobile segmentation, which marks a sharp drop from around 3.3 trillion won posted in the same period terminal yr.

Samsung Electronics launched the Milky way Note 9 in August, only intensifying competition in the global marketplace, specially by Chinese rivals, weighed down on the South Korean tech behemothic.

Hana Financial Investment estimated the shipment of the Galaxy Notation 9 came to ane.38 meg units in the starting time month, which is roughly 65 percentage of the tally for the previous year'due south Note 8 phablet.

The decreased earnings followed an increase in production costs, along with expanded expenditures in marketing projects, industry watchers added.

The South Korean tech behemothic is widely expected to revitalize its smartphone business past releasing fifth-generation network and foldable models next twelvemonth.

The brandish business organization is expected to have also posted an improvement post-obit increased shipments to Mainland china. The consumer electronics partitioning is idea to have remained stable.

Samsung Electronics, meanwhile, is anticipated to face a slight subtract in its operating profit for the fourth quarter in line with changes in global prices of memory chips, industry watchers added.

For the whole of 2018, the company is forecast to rake in an operating profit of 65 trillion won, beating the 53.6 trillion won posted in 2017.

Shares of Samsung Electronics closed at 44,700 won on Friday, unchanged from the previous session. The third-quarter report was announced earlier the market started trading.