Samsung Posts Huge Profits Jump

Samsung Electronics has reported a massive 45% jump net income of 2.19 trillion won (US$2.3 billion) on revenue of 15.22 trillion won (US$16 billion) for the third quarter of this year. Operating income for the third quarter was 1.85 trillion won (US$1.9 billion).

"Our strategy of producing high performance, differentiated products into multiple end markets allowed us to power ahead and deliver solid third quarter results amid a challenging market environment of the information-technology sector," said Dr. Woosik Chu, senior vice president and head of Samsung Electronics' investor-relations team.

"We anticipate our key business units to experience significant tailwinds in the fourth quarter, a seasonally strong period. Furthermore, our plan to invest an additional 1 trillion won to increase capacity of our memory-chip business is expected to create revenue opportunities next year."

The Telecommunication Network Business posted revenue of 4.71 trillion won (US$5 billion), and operating income of 520 billion won (US$548 million). In the third quarter, robust sales of the "Ultra Edition" premium handsets in Europe helped boost sales to a record 30.7 million units and double-digit profit margins of 11.1%.

In the fourth-quarter, the pace of the demand increase is expected to accelerate as the overall 3G market grows and demand for replacement rises. The company expects both the volume of sales and average sales price (ASP) to see significant improvement with the launching of 3G "Ultra Edition" handsets in various form factors and multimedia handsets."

Posted to the site on 17th October 2006