Samsung Electronics reported a strong improvement in third-quarter profit as expected. Net profit rose to KRW 7.39 trillion from KRW 4.85 trillion a year ago, and operating profit improved to KRW 7.39 trillion from KRW 4.06 trillion. Revenues rose 8.9 percent to KRW 51.68 trillion, led by the display and semiconductor business. The latter grew revenue 24.7 percent to KRW 20.31 trillion and doubled operating profit year-on-year to KRW 4.65 trillion.
The mobile phone unit recorded sales up 10.3 percent to KRW 25.94 trillion. Samsung said it saw a strong increase in shipments compared to the second quarter, thanks to new smartphone models such as the Galaxy S6 Edge+, Note5, A8 and J5. However, the average selling price was under pressure from a cut in price for the S6 and increased sales in the mid- to low-end range. The tablet business was stable compared to the previous quarter despite weak market demand, while the network equipment business increased profits thanks to LTE expansion contracts outside Korea. Samsung said it expects stronger demand for smartphones and tablets in Q4, while competition will intensify around the holiday season. It will focus on growing sales of its models released in Q3.
Samsung also announced plans to buy back KRW 11.3 trillion in shares and increase its capital spending. Capex is forecast to increase 14 percent this year to KRW 27 trillion as the company invests in growing its chip and display components business further.
