Samsung has reported a record operating profit of 8.12 trillion won (US$7.39 billion) for the three months to September 30.
That represents a 91 per cent increase year-on-year for the quarter.
Consolidated net profit for the three months to September period was 6.56 trillion won (US$5.9 billion).
Samsung’s solid performance is mainly attributed to increased sales of handheld phones and stronger demand for display panels. The mobile communications business posted 26.25 trillion won (US$23.9 billion) in revenue for the quarter, accounting for more than half of Samsung’s total sales.
The global market for smartphones increased in the low 10 per cent range during the quarter, while feature phones revenues grew about 10 per cent.
Samsung’s flagship Galaxy SIII smartphone, and a diverse range of other smart devices, were the key drivers in raising profits. Orders for Galaxy Tab variants were strong, as well as the Galaxy Note 10.1.
In the fourth quarter, the smartphone market is expected to continue its growth momentum with increased demand, especially in emerging markets.
The consumer electronics division – encompassing the visual display and digital appliances businesses – posted revenue of 11.60 trillion won for the third quarter. The operating profit of 430 billion won amounted to an increase of 38 per cent compared with the corresponding period last year but was down on the previous quarter.
Due to slowing TV demand during the summer vacation season, and economic uncertainty in developed markets, price competition among manufacturers intensified. To deal with these conditions, Samsung maintained profitability by expanding sales of both premium and region-specific LED TV models in developed and emerging markets, respectively.
With peak season demand for TV products in the fourth quarter expected to stimulate on-quarter growth in the mid 20-per cent range, the proportion of LED TV sales is also likely to expand. Although competition will intensify, Samsung will continue to focus on improving profitability by increasing its portions of premium products such as large-sized TVs (screens above 60 inches), strengthening its Smart TV leadership with expanded content service offerings, and growing its sales of localised LED TV models.
For the digital appliances business, sluggish demand in developed markets and seasonally weak demand for air conditioners resulted in an earnings decline for the quarter.
In the display panel segment, increased shipments of organic light-emitting diode (OLED) and liquid crystal display panels used in tablets and smartphones, as well as TVs drove up profitability.
Despite global economic uncertainties, Samsung’s end-product and components business units saw sales climb compared with the same quarter last year. Digital media and communications – comprising the consumer electronics and IT and mobile communications business sectors – accounted for 41.90 trillion won in sales, up 41 per cent year-on-year.
“We will do our best to sustain our earnings momentum throughout the fourth quarter by implementing strategies we have developed for our businesses,” said Robert Yi, senior VP and head of investor relations.
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