Samsung Electronics announced record operating profit from strong demand for its memory chips and other components, the company announced on Tuesday.
The company said the it will pay dividends of about 29 trillion won in the 2018-2020 period as its operating profit stood at 14.53 trillion won ($12.92 billion) –in the July to September period, nearly triple and the company’s best for any quarter. Samsung’s revenue for the quarter was KRW 62.05 trillion, an increase of KRW 14.23 trillion YoY, the company said in a regulatory filing.
"Strong demand for high-performance memory chipsets for servers and flagship mobile devices was a contributing factor to the company's overall robust performance," Samsung said in a statement. The Memory Business achieved strong earnings results for the quarter on the back of high seasonal demand for all memory applications, the trend toward higher density chips and a continuation of favorable supply and demand conditions and prices.
For 2018, the world’s biggest memory chip and smartphone maker is on track for record full-year profit and said it expects earnings to grow primarily from the component businesses, as conditions in the memory market are likely to remain favourable and the company expects increased sales of flexible OLED panels.
The results come only a couple of weeks after Samsung’s top boss Kwon Oh-Hyun resigned, saying that the company was facing an “unprecedented crisis” and its current profitability was “merely a fruit of decisions and investment made in the past”. Interestingly, the South Korean tech titan described the results as an “overall robust performance”.