Samsung Elec Q3 earnings beat forecasts


  • Business
  • Saturday, 18 Oct 2003

SEOUL: Samsung Electronics Co Ltd, the world’s biggest memory chipmaker, reported yesterday a better-than-expected 6.6% increase in third-quarter profit, lifted by improved sales of its mainstay product. 

The company, which also is a top maker of mobile phones and consumer electronics, is benefiting from booming demand for its flash memory chips used in digital cameras and phone handsets. 

Stronger computer demand as students in the United States and elsewhere returned to school and low inventory levels were the key drivers behind Samsung’s better performance. And an expected rise in shipments ahead of Christmas is likely to keep it buoyant. 

The Christmas season is historically the best period for the tech sector, and analysts said this year would show a solid improvement over last year’s dismal performance. Another bright spot was mobile phone sales: Samsung sold 15 million in the quarter, beating its target of 13 million. 

For the third quarter, Samsung earned 1.84 trillion won (US$1.57bil) in net profit, topping analysts’ forecasts for 1.64 trillion and up from 1.73 trillion a year ago. Turnover was 15% higher at 11.26 trillion won. 

Samsung is the only profitable major maker of memory chips, which have suffered a prolonged slump in prices. – Reuters 

For Another perspective from The Korea Herald, a partner of Asia News Network, click here

 

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