SAM­SUNG CEO QUITS DE­SPITE RECORD PROF­ITS

Manila Times - - BUSINESS TIMES - AFP

SEOUL: The CEO of Sam­sung Elec­tron­ics Kwon Oh- Hyun re­signed Fri­day, say­ing the South Korean tech gi­ant wa s facing an “un­prece­dented cri­sis”, even as it ex­pected prof­its to hit an all-time high in the third quar­ter.

Kwon’s res­ig­na­tion comes as the com­pany strug­gles to over­come a bribery scan­dal that sent Lee JaeYong, its de-facto head and heir to the Sam­sung em­pire, to jail.

But in a sign of good news for the com­pany, its es­ti­mated op­erat pe­riod of 14.5 tril­lion won ($12.8 bil­lion) marked a record for quar tril­lion won earned a year ear­lier.

Sales are ex­pected to have surged 29.65 per­cent on-year to 62 tril­lion won, with the boom­ing semi­con­duc­tor busi­ness boost­ing the com­pany’s bot­tom­line.

De­spite the spec­tac­u­lar per­for­mance, CEO Kwon said the com­pany was in the throes of an “un­prece­dented cri­sis” as he an­nounced his in­ten­tion to step down.

“For­tu­nately, the com­pany is now pro­duc­ing best-ever re­sults but this is merely a fruit of de­ci­sions and in­vest­ment made in the past”, he said in a state­ment.

“As we are con­fronted with un­prece­dented cri­sis in­side out, I New York, State of New York: Graphic chart­ing Sam­sung’s op­er­at­ing profit, smart­phone mar­ket share and share per­for­mance in the past year. be­lieve that time has now come for the com­pany (to) start anew, with a new spirit and young lead­er­ship to bet­ter re­spond to chal­lenges aris­ing from the rapidly chang­ing IT in­dus­try”, Kwon said.

Sam­sung did not an­nounce the per­for­mance es­ti­mates of each busi­ness di­vi­sion but its semi­con­duc­tor busi­ness is widely be­lieved to have con­trib­uted greatly to the record-beat­ing report.

The com­pany is set to re­lease its fi­nal earn­ings report later this month.

Sam­sung has been seek­ing to move past a bribery scan­dal that saw the com­pany’s de-facto head Lee Jae-Yong thrown into jail, and to over­come a damag Galaxy Note 7 smart­phone over ex­plod­ing bat­ter­ies.

Lee, who was found guilty in Au­gust of bribery, per­jury and other charges re­lat­ing to pay­ments made by Sam­sung to ousted pres­i­dent Park Geun-Hye’s se and says he is in­no­cent.

Prof­its up

“The re­sults are good ones that largely meet mar­ket ex­pec­ta­tions”, Kwon Sung-Ryul of Dongbu Se­cu­ri­ties told AFP.

“The com­pany has been rid­ing a global semi­con­duc­tor boom,” he said, adding the semi­con­duc­tor busi­ness alone is be­lieved to have con­trib­uted 10 tril­lion won to the

The com­pany’s main prod­ucts — DRAM and NAND mem­ory chips used in smart­phones—have also seen an in­crease in ship­ments and prices.

- axy S8 and Galaxy Note 8 smart­phones were also be­lieved to have mo­bile di­vi­sion, an­a­lysts said.

Yonhap In­fo­max data, based on also showed Sam­sung is ex­pected tril­lion won in the fourth quar­ter, up 74 per­cent from a year ear­lier.

Doh Hyun-woo, an­a­lyst at Mi­rae As­set Dae­woo Se­cu­ri­ties Co. said in a report that the re­lease of new mod­els, in­clud­ing the iPhone X by ri­val Ap­ple Inc. could weigh on Sam­sung’s mo­bile sales, but will also help its smart­phones parts busi­ness.

The con­sumer elec­tron­ics divi sea­sonal de­mand, he added.

Shares in Sam­sung Elec­tron­ics were trad­ing down 0.55 per­cent on heavy profit tak­ing in mid- day trade.

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