Samsung Electronics on track for record third quarter as chips soar

Andrew Cummings
October 13, 2017

In its earnings preview on Friday, Samsung put its July-September operating profit at 14.5 trillion won ($12.8 billion), compared with 5.2 trillion won ($4.6 billion) a year earlier.

Kwon serves as a co-vice chairman of Samsung Electronics with Jay Y. Lee, heir to the family that owns the giant Samsung conglomerate.

While the third quarter estimate for the IT and mobile division hovers below the second quarter, the figure is still better than expected, as Samsung was widely seen to post weaker returns on increased marketing costs for the Galaxy Note 8 released last month.

Samsung has been seeking to move past a bribery scandal that saw the company's de-facto head Lee Jae-Yong thrown into jail, and to overcome a damaging recall a year ago of its flagship Galaxy Note 7 smartphone over exploding batteries.


The chairman of Samsung Electronics' board of directors and one of the company's three chief executive officers says he will resign next year.

Revenue likely rose 29.7 percent from a year earlier to 62 trillion won, Samsung said in a regulatory filing.

"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.

Kwon, 64, has served as a vice chairman at Samsung Electronics since 2012.


Profits are expected to continue to rise, analysts say.

Samsung Electronics Vice Chairman Lee Jae-yong is now behind bars after a local court found him guilty of bribery and embezzlement in a massive corruption scandal that led to the ousting of former President Park Geun-hye.

Samsung Electronics said Friday Friday its CEO and Vice Chairman Kwon Oh-hyun would step down from management after three decades with the company amid a corruption scandal involving its de facto chief.

Samsung shares were trading at a new record high of 2.74 million won as of Thursday, as investors bet on record earnings in 2017 driven by growing demand for memory chips with ever greater processing power.


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