By Kim Yoo-chul
Samsung Electronics' third quarter results were better than expected, buoyed by brisk smartphone and other consumer gadget sales in the United States and China.
The recent depreciation of the Korean currency also helped the Suwon, Gyeonggi Province-based outfit record a handsome bottom line, described by analysts as a surprise.
In an earnings guidance Friday, Samsung said it expects an operating profit of 4.2 trillion won ($3.52 billion) for the July-Sept. period on sales of about 41 trillion won.
This is the first time in a year that the company has posted more than 4 trillion won in quarterly operating profit, although compare to the same period last year, the figure represents a 13.6 percent decline.
Samsung just released numbers without any official details for the guidance. Rather, it said the actual result may differ because it is still in the process of completing an audit.
The company will announce detailed earnings later this month.
The guidance was far better than a broader consensus by analysts of 3.2 trillion to 3.5 trillion won.
``We call it an `earnings surprise.’ Samsung will continue in an upbeat mood throughout this year on the back of robust smartphone sales amid the delay of the Apple iPhone 5,’’ said Ahn Seung-ho, an analyst at Hanwha Securities.
Samsung’s telecommunication division, in charge of its handset business, is expected to report over 2 trillion won in operating profit for the third quarter, according to estimates from analysts.
In the third quarter, Samsung began to surpass Apple in smartphones sales, a Samsung executive said. Over 28.5 million handsets were shipped in the three-month period, compared with 19.2 million in the second quarter, according to data from Strategy Analytics (SA), a market research firm.
``Samsung will become the world’s biggest smartphone provider this year and that will further lift the company’s profitability,’’ the Samsung executive said, asking not to be identified.
Ranked the world’s No. 1 in semiconductors, Samsung is expected to report some 1.5 trillion won in profit in that sector, up from the earlier prediction of 1 trillion won, thanks again to the recent depreciation of the won.
``The depreciation was positive for Samsung in coming up with impressive earnings in the third quarter,’’ said Greg Noh, an analyst at HMC Investment.
The won has been trading around 1,190 won of late, down sharply from 1,067 won in August.
Samsung officials said things seem to be good at present as the global consumer electronics market heads toward the historically strong fourth quarter.
There are also signs that prices of computer memory chips will stabilize, further boosting Samsung’s operating profit.
Usually, consumers buy more digital gadgets in the latter half of the year. Technology companies report their biggest earnings either in the third or fourth quarters. Samsung is also the world’s biggest maker of flat-screen TVs.
Samsung didn’t release its net profit amounts in the latest quarter. The estimates are all based on International Financial Reporting Standards (IFRS) ― an international accounting measurement that includes the results of Samsung’s overseas affiliates.