Samsung makes record profit

SOUTH Korea's Samsung Electronics has estimated it made a record quarterly operating profit of $US3.5 billion ($3.99 billion) in July-September. The company, the world's top maker of memory chips and flat TV screens, said in a statement it estimated consolidated operating profit for the third quarter at 4.1 trillion won ($3.99 billion).

This would exceed its previous record quarterly operating profit of 4.0 trillion won in the first quarter in 2004. It compares with 1.48 trillion in the third quarter of 2008.

Consolidated sales for the third quarter are estimated at 36 trillion won, up from 30.27 trillion a year earlier, the company said in a statement.

Samsung was providing earnings guidance ahead of its official quarterly earnings announcement on October 30.

Analysts said the recent sharp rise in memory chip prices, combined with continued firm performances by the company's other businesses, would have contributed to better earnings in the third quarter.

They expect earnings growth to slow in the current quarter due to the strengthening local currency and seasonally higher marketing costs.

"Samsung Electronics' outlook looks good," said Lee Kyoung-Min, an analyst at Woori Investment and Securities.

"But the guidance comes in line with expectations, so it's not a surprise."





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