Samsung posts better-than-expected quarterly profit

Samsung posts better-than-expected quarterly profit

South Korea-headquartered Samsung Electronics Co. on Friday posted quarterly profit that beat estimates as buoyant memory chip prices helped the company bounce back from the collapse of its fire-prone Galaxy Note 7.

In the October to December quarter, Samsung’s operating income jumped 50 per cent to 9.2 trillion won (US$7.8 billion). It was the company’s biggest quarterly profit in the last three years.

Analysts had projected, on average, a profit of 8.29 trillion won. Greg Roh, a senior analyst with HMC Investment Securities Co., called the results “a big surprise.”

Commenting on the results, Roh said, “It came in as a big surprise. The biggest contributors are of course the memory chip business and OLED sales. The chip prices will continue to rally and may rise more than 30 percent in the first quarter alone on sustained supply shortage.”

While the Galaxy Note 7 fire incidents devastated Samsung investors, a strong increase in chip sales and buoyant prices driven by Chinese demand and growth in displays helped generated stronger-than-expected profit for the company.

This year, Samsung is counting on its new flagship Galaxy S line to boost a beleaguered mobile business and repair its image. Stock in Samsung gained 2 per cent to 1,813,000 won per share in Seoul.