Samsung Electronics' operating profit hits 2-year high in Q3
Source: Xinhua | 2020-10-09
Operating profit of Samsung Electronics, South Korea's tech behemoth, hit the highest in two years amid a partial recovery in global demand following the economic downturn from the COVID-19 pandemic, the company said Thursday.
Preliminary figure for operating profit amounted to 12.3 trillion won (10.6 billion U.S. dollars) in the July-September quarter, up 58.1 percent from a year earlier.
It was the highest in two years since the third quarter of 2018, topping 10 trillion won in seven quarters.
Revenue grew 6.5 percent over the year to 66 trillion won in the third quarter.
The third-quarter revenue surpassed the previous record high of 65.98 trillion won tallied in the fourth quarter of 2017.
The ratio of operating profit to revenue stood at 18.6 percent in the third quarter, higher than 11.6 percent in the first quarter and 15.4 percent in the second quarter each.
Net income and detailed earnings on each business unit will be announced later this month after an external audit and the board of directors' approval.
The third-quarter profit beat market expectations estimated at the lower 10 trillion won.
Market watchers said global demand, especially for smartphones and consumer electronics, partially recovered due to the reopening of businesses in major economies following the shutdowns on worry about the virus spread.
Samsung's mobile phone-making unit was estimated to have recorded an operating profit at around the middle 4 trillion won during the July-September quarter.
It more than doubled compared to the profit of 1.95 trillion won tallied a year earlier.
Pent-up demand for smartphones recovered, especially for Samsung's newly launched gadgets such as Galaxy Note 20 series unveiled in August. The delayed rollout of Apple's new iPhones also contributed to the brisk smartphone sale by the South Korean company.
The number of Samsung's smartphone shipments was estimated at about 80 million for the third quarter, up more than 40 percent from the previous quarter. The number of tablet shipments was estimated at some 10 million.
The consumer electronics division's operating profit was believed to have topped 1 trillion won in the third quarter. It would be the highest since the second quarter of 2016.
Global demand for home appliances, such as TVs, increased both online and offline as people refrained from outside activities such as traveling and eating out amid the fear of the virus infection.
The semiconductor-producing business was believed to have posted an operating profit at the lower 5 trillion won in the third quarter. It would be similar to 5.43 trillion won recorded in the second quarter.
The display panel-making unit's operating profit was estimated between 300 billion won to 500 billion won. (1 U.S. dollar equals 1,152.56 South Korean won)
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