Smartphones give Samsung a boost
Samsung Electronics estimated its third-quarter operating profit nearly doubled from a year earlier to an all-time high, likely driven by strong smartphones sales that offset weak semiconductor orders.
The company's earnings preview estimated July-September operating income at 8.1 trillion won (7.3 billion US dollars), compared with 4.25 trillion won in the year-earlier period.
The operating profit beats the market consensus of 7.6 trillion won according to a poll of 26 analysts by FnGuide, a financial information provider.
It also is 21% growth from its previous record high posted in the April-March quarter.
The world's largest maker of mobile phones, memory chips and TVs estimated its quarterly revenue at 52 trillion won, a 26% growth from a year earlier.
Shares of Samsung opened 0.2% higher in Seoul after the preliminary earnings announcement. Samsung will announce its full quarterly results including net income and breakdown figures for each division toward the end of this month.
Analysts believe Samsung's IT and Mobile Communications team that sells smartphones, media players and tablet computers generated almost 70% of its operating income in the last quarter.
Since October 2011, the South Korean firm renewed its all-time high figure for operating profit every quarter, as runaway demand for its Android-powered smartphones outweighed weak orders of memory chips and thin margins in television sales.
Samsung surpassed Apple and Nokia in annual smartphone sales for the first time in 2011, according to Strategy Analytics.