Samsung Electronics on track for record third quarter as chips soar

The Galaxy Note 8 appears to be helping Samsung extinguish the ghosts of Note 7.                  Josh Miller  CNET

The Galaxy Note 8 appears to be helping Samsung extinguish the ghosts of Note 7. Josh Miller CNET

Tech giant Samsung Electronics Co Ltd estimated on Friday its third-quarter operating profit almost tripled from a year earlier, beating expectations as strong memory chip prices likely padded margins.

Operating profit was estimated at 14.5 trillion won (US$12.8 billion), compared with 5.2 trillion won tallied a year earlier, the company said in a regulatory filing. Revenue likely rose 29.7 percent from a year earlier to 62 trillion won, versus the analysts' average forecast of 62.1 trillion won.

The record profits are likely backed by a recovered mobile division - the well-received Galaxy Note 8 began sales last month - and the continuing high-demand for its memory chips. Pre-orders for the Note 8 hit the highest-ever for the Note series, Samsung previously said.

It is the world's largest vendor of memory chips, both in DRAM and NAND. Growing sales of organic light-emitting diode (OLED) smartphone screens for new Apple smartphones also have supported forecasts of a new earnings record in the fourth quarter.