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Samsung Electronics guides for weaker fourth-quarter notwithstanding smartphone uptick

SEOUL Tech hulk Samsung Electronics Co Ltd (005930.KS) on Thursday reported a initial on-year distinction expansion in dual years though warned fourth-quarter benefit will tumble sequentially due to sell rate conditions and seasonally weaker components sales.

The South Korean organisation pronounced third-quarter distinction jumped 82 percent to 7.4 trillion won ($6.46 billion), in line with a guidance. The world’s No.1 builder of memory chips and smartphones pronounced income rose 8.9 percent from a year progressing to 51.7 trillion won.

“In a fourth quarter, a association expects benefit to decrease from a progressing quarter, as it does not design a unfamiliar sell rate to have a certain effect,” Samsung pronounced in a statement.

It pronounced a won’s debility opposite a U.S. dollar led to a 800 billion won benefit during a July-September period.

The mobile division’s distinction rose to 2.40 trillion won from 1.75 trillion a year earlier, carried by sales of a Galaxy Note 5 as good as new lower-end products that have been struggling to contest with Chinese handsets done by a likes of Xiaomi Inc.

But a chip multiplication remained a tip earner for a fifth-straight entertain with a record 3.66 trillion won profit.

Healthy third-quarter earnings have increased hopes that Samsung’s distinction liberation stays intact, nonetheless investors sojourn distrustful about Samsung’s ability to lapse to a record increase it posted in 2013.

Despite a vital renovate of a product lineup, researcher TrendForce says Samsung’s smartphone shipments will cringe for a initial time in 2015 due to foe from Apple Inc (AAPL.O) in a high-end marketplace and Chinese rivals in a low end.

($1 = 1,145.1800 won)

(Reporting by Se Young Lee; Editing by Stephen Coates)

Article source: http://www.reuters.com/article/2015/10/29/us-samsung-elec-results-idUSKCN0SM30U20151029

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