Samsung sees record operating profit

The company, the world's top maker of memory chips and flat TV screens, said it estimates consolidated operating profit for the third quarter at 4.1 trillion won (US$3.5bn).

This would exceed its previous record quarterly operating profit of 4.0 trillion won in the first quarter in 2004. It compares with 1.48 trillion in the third quarter of 2008.

Consolidated sales for the third quarter are estimated at 36 trillion won, up from 30.27 trillion a year earlier, the company said.

Samsung was providing earnings guidance ahead of its official quarterly earnings announcement on October 30.

Analysts said the recent sharp rise in memory chip prices, combined with continued firm performances by the company's other businesses, would have contributed to better earnings in the third quarter.

They expect earnings growth to slow in the current quarter due to the strengthening local currency and seasonally higher marketing costs.

"Samsung Electronics' outlook looks good," said Lee Kyoung-Min, an analyst at Woori Investment and Securities. "But the guidance comes in line with expectations, so it's not a surprise."

Stock market reaction was subdued. The company's shares were up 0.7% at 752 000 won at 10.26 am (0126 GMT), while the broader market was up 0.1%.

Dow Jones Newswires contributed to this report.

Source: AFP

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