Feeds

Samsung has bloody good quarter

Confounds expectations

Build a business case: developing custom apps

Samsung has reported a 16 per cent increase in profits for the third quarter of 2006 compared with the same period in 2005.

The Korean electronics giant posted net profit of 2.19 trillion won (€1.83bn) for the three months ending 30 September. This is far higher than analysts' expectations of a net profit of 1.89 trillion won (€1.58bn).

Sales rose 4.7 per cent to 15.22 trillion won (€12.73bn) but operating profit was down 13 per cent on Q3, 2005 to 1.85 trillion won (€1.54bn). Sales in the firm's semiconductor business reached 4.91 trillion won (€4.1bn), seven per cent up on same time last year, while memory chip sales rose five per cent.

Samsung shipped 30.7 million mobile phones, a quarterly record and 4.4 million more units higher than in Q2. Samsung is launching a new "super 3G" handset on Tuesday aimed at the European market. The SGH-i520 has a 2.3 inch display with a two megapixel camera, Bluetooth 2.0 and can be connected to a PC using USB 2.0.

These results mark the company's third profit gain in the past four quarters. Samsung has increased its estimated capital investment plan for 2006 to 10.24 trillion won (€8.56bn), an increase of 10.9 per cent on previous estimates. News of the results and the increased investment received a positive reaction on the Korean stock exchange with the KOSPI index rising one per cent.

"Our strategy of producing high performance, differentiated products into multiple end markets allowed us to power ahead and deliver solid third quarter results amid a challenging market environment of the information-technology sector," said Dr Woosik Chu, senior vice president and head of Samsung Electronics' investor-relations team.

"We anticipate our key business units to experience significant tailwinds in the fourth quarter, a seasonally strong period. Furthermore, our plan to invest an additional 1 trillion won (€830 million) to increase capacity of our memory-chip business is expected to create revenue opportunities next year," he said.

Copyright © 2006, ENN

The essential guide to IT transformation

More from The Register

next story
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?