Samsung records highest third-quarter operating profit in 3 years

Samsung records highest third-quarter operating profit in 3 years
Samsung records highest third-quarter operating profit in 3 years

Samsung Electronics Inc. reported strong third-quarter earnings Thursday as a result of the continued strong performance of its semiconductor business.

Its net profit rose 31.3 percent from a year earlier to 12.29 trillion won (US$10.5 billion) in the July-September period, the world’s largest smartphone and memory chip maker said in a periodic report.

Operating profit jumped 28 percent in the third quarter to 15.82 trillion won ($13.48 billion), the largest since the third quarter of 2018. Sales hit a record quarterly high of 73.98 trillion won, up from 66.96 trillion won a year earlier.

Samsung’s operating profit rose 26 percent on-quarter, and sales rose 10 percent, compared to the second quarter.

The company’s strong performance was largely supported by its chip business, which continued to show steady growth, with higher memory chip prices, and improved revenue and earnings in the chip business.

The mobile business gained new momentum with the launch of two new foldable phones in August, the Galaxy Z Fold3 and the Galaxy Z Flip3.

But an expected drop in memory chip prices amid slowing demand for IT products, with many countries moving to lift anti-coronavirus restrictions, could weigh on the company’s fourth-quarter earnings.

Industry tracker Trend Force has forecast that DRAM chip prices will fall 15-20% annually, in the fourth quarter, and show a downward trend early next year, as supply is expected to outpace demand.

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