Samsung profits tip new record of $14B

SOUTH Korean telecom giant Samsung Electronics expects to post a record operating profit of more than $14 billion in the fourth quarter, it said yesterday, boosted by huge demand for its memory chips.

The booming chip unit has helped the firm overcome a bribery scandal that saw its de facto head jailed and the embarrassing Galaxy Note 7 debacle.

Samsung estimated operating profits would hit 15.1 trillion won ($14.1 billion) in October-December, nearly double the 9.2 trillion won posted a year earlier.

However, the figure was below analyst forecasts, which averaged 16.1 trillion won in a survey by Bloomberg News.

Full-year operating profit was projected at 53.6 trillion won – also a record.

Samsung was dealt a blow in August when Lee Jae-yong was jailed after being found guilty of bribery, perjury and other charges relating to payments made by Samsung to ousted President Park Geun-hye’s secret confidante.

Lee is appealing his fiveyear sentence and says he is innocent.

That came after a damaging recall in 2016 of its flagship Galaxy Note 7 over exploding batteries, which cost Samsung billions of dollars and dealt a blow to its global reputation.

But the travails have not impacted demand for Samsung Electronics’ products.

Fourth-quarter sales were projected to have jumped 23.8 percent year-on-year to 66 trillion won, with full-sales estimated at 239.6 trillion won.

But Greg Roh, an analyst at HMC Investment Securities, said the figures were “satisfactory” despite missing estimates.

“I think Samsung overspent on marketing because it was the end of the year,” Roh told AFP, and added: “The first quarter for this year looks good for Samsung.”