Samsung posts record Q3 net profit of $5.97B

Seoul–South Korea’s Samsung Electronics Friday posted a record net profit of 6.6 trillion won ($5.97 billion) for the third quarter, powered by strong smartphone sales and improved demand for display panels.

The world’s largest technology firm by revenue also recorded a record operating profit in July-September of 8.12 trillion won, up 91 percent from the same period last year.

Samsung said its mobile communications business took in 26.25 trillion won in revenue for the quarter, accounting for more than half the company’s total.

“The business environment remained difficult with global economic uncertainties persisting amid the fiscal concerns in the US and Europe,” said Samsung Senior Vice President Robert Yi.

“However, we continued to break our quarterly profit records,” Yi said.

The third quarter figure beat the previous net profit record of 5.19 trillion won set in April-June.

Analysts expect the technology giant to see a marginal fall in income in the final quarter, as sales to retailers peak in the third quarter ahead of the holiday season and technology companies ramp up spending on marketing for the year-end rush.

However, they said Samsung’s telecommunications business will continue to drive profit with its latest offerings of high-end mobile products, such as its flagship Galaxy S III smartphone.

“We expect Samsung will deliver solid earnings growth with product leadership in the consumer branded business, smartphone and TV, and enhanced bargaining power in the component business, semiconductor and display panel,” Citi said in a report.

— Dow Jones Newswires contributed to this report —