- Samsung said on Thursday that operating profit likely reached 12.3 trillion won ($10.6 billion) in the three months ending in September. The number is much higher than the 10.5 trillion won estimated by analysts according to data from Refinitiv;
- If confirmed, it will be the company’s strongest result since the 17.57 trillion won profit made in the third quarter of 2018;
- Samsung’s full balance sheet is expected to be released later this month.
Samsung said on Thursday that its third-quarter profit probably jumped 58%, to the highest level in two years, exceeding analysts’ expectations. The performance came after U.S. sanctions prompted China’s Huawei to expand orders for memory chips from the South Korean group.
In addition to forcing an increase in chip orders, Donald Trump‘s government sanctions brought down Huawei’s cell phone sales outside China, making room for products from the South Korean company, which is a Washington ally, analysts said.
READ ALSO: China says U.S. TikTok, WeChat bans break WTO rules
Huawei had to accelerate chip orders from Samsung as Trump’s sanctions restricted the company’s access to the component from mid-September.
Samsung said on Thursday that operating profit likely reached 12.3 trillion won ($10.6 billion) in the three months ending in September. The number is much higher than the 10.5 trillion won estimated by analysts according to data from Refinitiv. If confirmed, it will be the company’s strongest result since the 17.57 trillion won profit made in the third quarter of 2018.
The group’s revenue probably rose 6% in the same period over the third quarter of last year, to 66 trillion won, the company said.
Samsung’s full balance sheet is expected to be released later this month.
“It seems Huawei’s impact on Samsung’s chip business was bigger than the market expected, and there was a big surprise in the smartphone and home appliance businesses,” said CW Chung, head of research at Nomura in Korea.
