Samsung Profits Hit Another Record on Chips, Phones

Samsung Electronics Co. said net profit rose 17 percent in the third quarter to a record high amid strength in its semiconductor and mobile phone businesses.

Samsung, the world’s largest manufacture of computer memory chips and flat screen TVs, earned 4.46 trillion won ($3.97 billion) in the three months ended Sept. 30, the company said Friday in a regulatory filing and statement. It had net profit of 3.81 trillion won the year before.

The result was Samsung’s third straight record net profit performance. The company said in the statement that its semiconductor business recorded record sales of 10.66 trillion won during the quarter.

Sales of mobile phone handsets rose 19 percent from the same period last year to 71.4 million units, Samsung said. The company attributed the performance to the launch of the Galaxy S and Wave smartphones.

Samsung said overall third-quarter sales rose 12 percent to 40.23 trillion won, also a record and the first time the company has seen revenues surpass the 40 trillion won mark. The result compares with sales of 35.89 trillion won last year.

“In the third quarter, Samsung faced a challenging business environment including declining demand for PCs and TVs, along with a continued economic slowdown in developed markets such as the U.S. and Europe,” Robert Yi, vice president and head of investor relations, said in a statement.

“Despite this, we achieved strong revenue growth and profitability, which was built upon our cost competitiveness in memory semiconductors and increased sales of cutting-edge products such as our latest smartphones,” Yi added.

On the operating level — seen as a direct indicator of business performance before taxes, dividends, asset sales and other items figured into net profit or loss — Samsung reported a profit of 4.86 trillion won in the third quarter, or 15 percent higher than the year before.

Suwon, South Korea-based Samsung is a major force in the global electronics industry. Besides dominating in memory chips and TVs, the company is also the world’s largest manufacturer of large-sized liquid crystal displays and ranks No. 2 in mobile phones behind Nokia Corp. of Finland.

Shares in Samsung, which released earnings about 25 minutes after the start of trading, fell 1.8 percent to 750,000 won approximately an hour later. The stock price surged 77 percent in 2009.

KELLY OLSEN, AP Business Writer SEOUL, South Korea