Samsung Q3 Profit Climbs

Samsung Electronics Co Ltd (SMSN.L,SSNNF.OB,SSNLF.OB) reported a profit for the third-quarter that climbed 30.11 percent from the previous year, reflecting continued robust performance of its key semiconductor business. Quarterly sales rose 10.48 percent from the prior year.

The company said it will focus on meeting demand for memory and system semiconductor products in the fourth quarter even as component shortages at some customers may affect demand.

Looking ahead to the fourth quarter, for mobile displays, the company forecasts strong demand for new smartphones to continue and sales for laptops and gaming devices to grow during the holiday season. Thus, it expects the earnings to remain solid for the fourth quarter.

The Mobile Communications Business expects to post robust profitability by expanding sales of premium products such as foldable phones, meeting replacement demand with low- to mid-range 5G smartphones and increasing sales of tablets and wearables.

Looking ahead for the fourth quarter, the company expects higher demand for TVs quarter-on-quarter due to year-end seasonality. However, year-on-year demand is expected to decrease as more regions adopt "Living with COVID-19" policies and pent-up demand effects continue to fade. Samsung plans to respond by focusing on premium product sales, with optimized year-end promotions for both its offline and online channels.

The South Korean electronics giant reported that its net income attributable to the shareholders of the parent company for the third-quarter climbed 30.11 percent to 12.06 trillion Korean won from 9.27 trillion won in the same quarter last year.

Operating profit for the quarter grew 28.04 percent to 15.82 trillion won from the previous year.

Total consolidated revenues for the third-quarter were 73.98 trillion won, a 10.48% increase from a year earlier.

The Semiconductor businesses posted 26.41 trillion won in revenue and 10.06 trillion won in operating profit in the third quarter.

The Display panel business posted 8.86 trillion won in consolidated revenue and 1.49 trillion won in operating profit for the third quarter.

The IT & Mobile Communications division posted 28.42 trillion won in consolidated revenue and 3.36 trillion won in operating profit for the third quarter.

The Consumer Electronics Division, comprised of the Visual Display and Digital Appliances businesses, recorded 14.10 trillion won in consolidated revenue and 0.76 trillion won in operating profit in the third quarter.

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