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(LEAD) Samsung Electronics Q3 net profit up 17.5 pct on-year

All Headlines 09:13 October 31, 2018

(ATTN: RECASTS lead; ADDS details throughout)
By Kang Yoon-seung

SEOUL, Oct. 31 (Yonhap) -- Samsung Electronics Co. said Wednesday its third-quarter net profit moved up 17.5 percent from a year earlier, on the back of the strong performance of its memory chip business.

Net profit came to 13.1 trillion won (US$11.5 billion) in the July-September period, compared with 11.1 trillion won posted a year earlier, the company said in a regulatory filing.

Operating profit advanced 20.9 percent over the cited period to reach 17.5 trillion won, hitting a new record.

Sales increased 5.5 percent in the third quarter to reach 65.4 trillion won, compared with 62 trillion won posted last year.

The third-quarter figures were in line with the guidance report announced earlier this month.

The operating-profit-to-sales ratio reached 26.8 percent to set another record.

The crucial chip business remained the major contributor to Samsung's robust quarterly earnings.

The chip business of the device solutions division saw its operating profit reach 13.65 trillion won in the July-September period, up 37 percent from 9.96 trillion posted in the same period last year. The display panel business posted an operating profit of 1.1 trillion won in the third quarter.

The IT and mobile division, which covers smartphones, posted an operating profit of 2.22 trillion won in the three-month period, falling 32 percent from 3.29 trillion won last year.

The consumer electronics division reported an operating profit of 560 billion won in the same three months, up 14 percent on-year.

Samsung said its facility investment for this year is estimated at 31.8 trillion won, with the chip business accounting for 24.9 trillion, followed by the display segment with 3.7 trillion won. In the third quarter, the company invested 5.6 trillion won.

Shares of Samsung Electronics closed at 42,350 won Tuesday, up 2.29 percent from the previous session. The third-quarter report was announced before the market opened Wednesday.

(LEAD) Samsung Electronics Q3 net profit up 17.5 pct on-year - 1


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