Samsung operating profit hits record high of KRW 17.5 trln in Q3

Samsung Q3 2018 Results Company Posts USD 57.5 Billion Record Revenue

Samsung Representational Asset

Operating profit reached 17.5 trillion won (15.5 billion USA dollars) in the July-September quarter, up 20.4 percent from a year earlier. Consolidated profits are predicted to be close to $15.5 billion, a good 18% more than this year's previous quarter and close to 20% more than the results for Q3 last year. The unit generated about 10% of the South Korean company's 54 trillion won ($48 billion) profit previous year. Lower than expected sales of its flagship Galaxy S9 ensured this prediction came to pass, with the quarter bringing Samsung's slowest profit growth in more than a year.

With the area responsible for around 80 percent of Samsung's quarterly operating profit, however, industry watchers said the company will need to diversify its portfolio to evade potential pitfalls down the road. The revenue is an over 20 per cent increase (year on year) and almost 12 per cent high from the first quarter of this year, apparently on the back of robust returns from its chip business. The semiconductor business accounted for as high as 78% of Samsung's overall operating profits during the quarter. DRAM chips, which help devices perform multiple tasks, are its main memory product. Chip costs are diving, and its up and coming foldable telephones probably won't have an enormous effect on its mobile business.

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The display panel unit was estimated to have recorded an operating profit of around 1 trillion won (884 million USA dollars), while the profit of consumer electronics division estimated at some 600 billion won (531 million US dollars). The division has been posting losses since the second quarter of 2017.

The third-quarter guidance report's operating profit hovered below the market's estimate of 771.7 billion won, based on a survey conducted by securities firms. "[Samsung Electronics] is facing a slowdown on earnings momentum, as DRAM prices has been falling since the fourth quarter". ZDnet later reported that it expects chip profits to make up at least 70 percent of the total for this quarter.

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