قالب وردپرس درنا توس
Home / Business / Samsung reports a huge profit in the third quarter, but warns of a decline in the future

Samsung reports a huge profit in the third quarter, but warns of a decline in the future



The South Korean conglomerate reported that operating profit for the July-September quarter increased by nearly 60% compared with the same period last year, reaching 12.35 trillion won ($10.9 billion). Analysts surveyed by data provider Refinitiv had expected its operating profit to be 11.1 trillion won ($9.8 billion).

Samsung said its sales in the third quarter increased by about 6% to 67 trillion won ($59 billion). Analysts surveyed by Refinitiv had expected sales of 64.7 trillion won ($57 billion).

But looking ahead, the company said it expects its fourth-quarter profit to be driven by weak demand for memory chips from server customers. It added that due to the highly competitive market environment, it also expects smartphone sales to decline and marketing costs to increase.Competitor smartphone manufacturers apple (AAPL) The highly anticipated iPhone 1
2 was launched this month, the first device to support 5G.
Samsung’s share price recently fell 2.2% in Seoul, surpassing South Korea’s decline. Cospi (Gauss).

The financial report was released shortly after the death of Lee Kun-hee. Lee Jianxi is the business giant that led Samsung from a small Korean company to a multinational group. Li died on Sunday at the age of 78.

Samsung Chairman Lee Kin Hee passed away due to long-term illness

Since his father suffered a heart attack in 2014, Lee’s son Lee Jae-yong has been the de facto head of the company. Earlier this week, Samsung declined to comment when asked whether the vice chairman would be the chairman of his father.

“Although we assume that Lee Zongyao…will serve as the chairman, given Samsung’s uncertainty, we believe that Samsung’s group ownership structure, management and business operations will not undergo meaningful changes in the short term [an] Ongoing trial issues and potential new regulations [South Korean] Government”, analysts at brokerage firm Daiwa wrote in a report on Tuesday.

Xiao Li was convicted of bribery and other corruption charges in 2017, and was only overturned and suspended by the Court of Appeals after serving less than a year in prison. Last month, the vice chairman was sued for a disputed merger in 2015, which helped him strengthen his control of the company.

Despite the legal troubles, analysts at Daiwa Securities stated that they “look forward to Li Zongyao and senior management [merger and acquisition] Opportunities to ensure the company’s long-term earnings growth momentum” and to surpass Chairman Li’s era to enhance the company’s value.

Samsung is one of the world’s top chip manufacturing companies. However, the semiconductor industry has been rapidly consolidating due to the massive R&D and capital expenditures required to stay ahead of the cutting-edge technology of chip manufacturing.
Samsung’s rival SK Hynix announced this month that it will spend $9 billion to acquire part of Intel’s memory chip manufacturing business. AMD agreed on Tuesday to buy rival chip maker Xilinx for $35 billion.

-Jake Kwon and Yoonjung Seo contributed to this report.


Source link