Samsung forecasts near-30% jump in Q3 operating profit

South Korean tech elephantine Samsung Electronics defied the planetary proviso concatenation challenges to forecast a near-30-percent leap successful third-quarter operating profits connected Friday.

The world's biggest smartphone shaper said it expected its operating profits to scope astir 15.8 trillion won ($13.3 billion) successful a regulatory filing, up 27.9 percent year-on-year.

The institution is the flagship subsidiary of the elephantine Samsung group, by acold the largest of the family-controlled empires known arsenic chaebols that predominate concern successful South Korea, the world's 12th largest economy.

The conglomerate's wide turnover is equivalent to a 5th of the country's gross home product.

Samsung Electronics estimated income for the July-September play astatine 73 trillion won, up 9.0 percent year-on-year—a grounds for immoderate quarter, a spokeswoman told AFP.

The coronavirus has wreaked havoc connected the satellite economy, with lockdowns and question bans imposed astir the globe for galore months.

But the pandemic—which has killed astir 4.8 cardinal radical worldwide—has besides seen respective tech companies boom.

Coronavirus-driven moving from location has boosted request for devices powered by Samsung's chips, arsenic good arsenic location appliances specified arsenic televisions and washing machines.

Now proviso concatenation problems are hitting economic activity astir the world, with companies facing shortages of cardinal commodities, components and shipping capacity.

But weakness successful the South Korean won against the US dollar has boosted the spot maker's nett margins, peculiarly successful its smartphone business, according to analysts.

The currency effect has offset troubles caused by "disruptions successful smartphone shipments", which were triggered by parts shortages and coronavirus lockdowns successful Vietnam and India, wherever Samsung has production lines, Hana Financial Group said successful a report.

But guardant prospects are looking little rosy, analysts say, with request for DRAM representation chips—a cardinal Samsung product—expected to autumn successful the 4th fourth arsenic manufacturers conflict with supplies, pushing down prices.

"With the coronavirus spreading again successful South East Asia and an ongoing energy shortage contented successful China, a disruption successful immoderate of the accumulation lines tin disrupt the full accumulation process," said Park Sung-soon, an expert astatine Cape Investment & Securities.

"With parts moving short, demands for representation chips volition alteration arsenic good due to the fact that companies can't nutrient acceptable products," helium told AFP.

The operating profits estimation was successful enactment with expert forecasts according to Bloomberg News.

Samsung Electronics shares closed down 0.1 percent.

Parole release

Samsung's latest net estimation came aft Lee Jae-yong, its vice-chairman and the de-facto person of the wider Samsung group, walked retired of situation successful August.

Lee was released connected parole aft completing conscionable implicit fractional of his 2 and a fractional twelvemonth condemnation successful the latest illustration of South Korea utilizing economical grounds to escaped concern leaders imprisoned for corruption oregon taxation evasion.

He was jailed for bribery, embezzlement and different offences successful transportation with the corruption ungraded that brought down ex-South Korean president Park Geun-hye.

His instrumentality to absorption has eased concerns implicit decision-making astatine Samsung.

But his August merchandise is not the extremity of his ineligible travails: helium remains connected proceedings connected abstracted accusations of manipulating a takeover to creaseless his succession astatine the apical of the Samsung group—the aforesaid contention implicit which helium was said to person sought assistance from Park.

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© 2021 AFP