Samsung Electronics on track for record third quarter as chips soar

Samsung Electronics Predicts Record High Operating Profit for Q3

Samsung Electronics Predicts Record High Operating Profit for Q3

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.