Samsung’s record earnings, third quarter operating profit ranked second

Seoul: Samsung Electronics reported the second-highest operating profit in the third quarter on the back of a consistently strong performance from its core semiconductor business.

The world’s largest memory chip and smartphone vendor said in a regulatory filing that its net profit rose 31.3 percent from a year earlier to ₹12.29 trillion ($10.5 billion) in the July-September period.

Operating profit rose 28 percent to ₹15.82 trillion in the third quarter, the second-highest profit ever since the third quarter of 2018.

It set a quarterly record of 73.98 trillion in sales, up from 66.96 trillion a year ago, Yonhap news agency reported.

On a quarterly basis, Samsung’s operating profit grew 26 per cent and sales grew 10 per cent from the second quarter.

The company’s strong performance is largely driven by its chip business, which has continued to grow with rising memory chip prices and growth in its chip contract manufacturing business.

The mobile business gained momentum with the launch of two new foldable smartphones – Galaxy Z Fold 3 and Galaxy Z Flip 3 in August.

Operating profit from the semiconductor unit stood at 10.6 trillion in the third quarter, more than double from 5 trillion a year ago. This figure made the company’s third-quarter operating profit 64 percent.

All pricing conditions remained favorable and the company set a new record for quarterly bit shipments and the second highest revenue for DRAM, with significant growth in server sales, the company said.

The company expects demand for servers to remain solid in the fourth quarter, driven by new CPU adoption and expanding data center investments.

Samsung’s IT and Mobile Communications division generated revenue of ₹28.42 trillion. Operating profit was 3.36 trillion Won.

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