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Samsung upbeat despite profit dip | Samsung upbeat despite profit dip |
(about 11 hours later) | |
Samsung Electronics has seen a 13% fall in operating profit as margins at its computer chip, LCD TV and mobile phone divisions fell from a year ago. | Samsung Electronics has seen a 13% fall in operating profit as margins at its computer chip, LCD TV and mobile phone divisions fell from a year ago. |
Operating profit for the three months to 30 September hit 1.85 trillion won ($1.8bn; £1bn), down from 2.13 trillion won in the same period of 2005. | Operating profit for the three months to 30 September hit 1.85 trillion won ($1.8bn; £1bn), down from 2.13 trillion won in the same period of 2005. |
However, the South Korean firm said it expected margins and sales to rise in the final three months of the year. | However, the South Korean firm said it expected margins and sales to rise in the final three months of the year. |
Samsung's upbeat outlook sent its shares up 1% on Seoul's KOSPI index. | Samsung's upbeat outlook sent its shares up 1% on Seoul's KOSPI index. |
Margins improving | Margins improving |
The electronics giant is Asia's biggest manufacturer of mobile phones and computer chips. | The electronics giant is Asia's biggest manufacturer of mobile phones and computer chips. |
Samsung said it expected a record sale of mobile phone handsets in the final quarter of 2006, following the launch of a new range of ultra-slim models which have been competing well with rival Motorola's Razr phones. | Samsung said it expected a record sale of mobile phone handsets in the final quarter of 2006, following the launch of a new range of ultra-slim models which have been competing well with rival Motorola's Razr phones. |
Although profit margins for many of its products were down on a year ago, they had been rising in recent months, the company added. | Although profit margins for many of its products were down on a year ago, they had been rising in recent months, the company added. |
Net profits during the quarter beat forecasts with a 16% gain. | Net profits during the quarter beat forecasts with a 16% gain. |
Samsung said a global shortage in DRAM computer chips had helped fuel profits in its memory chip division, where margins had jumped to nearly 30%. | Samsung said a global shortage in DRAM computer chips had helped fuel profits in its memory chip division, where margins had jumped to nearly 30%. |
"Our plan to invest an additional one trillion won to increase capacity of our memory-chip business is expected to create revenue opportunities next year," the company said. | |
Dynamic Random Access Memory (DRAM) chips are used to store data while a device is turned on. | Dynamic Random Access Memory (DRAM) chips are used to store data while a device is turned on. |
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